1) Revenue is considered to be earned when

a.a company exchanges goods or services for cash or claims to cash.

b.when it is realized or realizable.

c.a company has substantially completed what it must do in order to be entitled to the benefits represented by the revenues.

d.assets received by the company in exchange for goods or services are readily convertible to known amounts of cash or claims to cash.

2) A very popular measure used to determine the progress toward completion under the percentage-of-completion method is the

a.cost-to-cost method.

b.efforts expended method.

c.output method.

d.units of work performed method.

3) Which of the following is not a characteristic of a barter transaction which is seen as a sale?

a.One type of asset or service is exchanged for a similar type of asset or service.

b.The entity's future cash flows are expected to change significantly.

c.The transaction is a legitimate arm's length sale and purchase.

d.The entity will be in the same position after the transaction as it was before.

4) Concessionary selling terms might include which of the following?

a.Deeply discounted selling price.

b.Lengthy payment terms.

c.Bill-and-hold arrangements.

d.All of the above might be considered concessionary selling terms.