19. The Billings on Construction in Progress account is a(n) A) B) C) D) contract revenue account. inventory account. contra-inventory account. construction expense account. 20. A possible source of taxable income that may be available to realize a tax benefit for loss carryforwards is future reversals of existing taxable temporary differences. A) True B) False 21. If preferred stock is cumulative and no dividends are declared, the company subtracts the current year preferred dividend in computing eamings per share. A) True B) False 8) e 22. The principal advantage of the completed-contract method is that reported revenue reflects final results rather than estimates. A) True B) False 23. The market value method is used to account for the exercise of convertible preferred stock A) True B) False 24. The last step in the process for revenue recognition is to A) allocate transaction price to the separate performance obligations. B) recognize revenue when each performance obligation is satisfied C) determine the transaction price. D) identify the contract with customers. 25. Companies can use the expected value to estimate variable consideration when A) B) C) D) the contract has only two possible outcomes. a company has a small number of contracts with similar characteristics. a company can use the most likely amount in a range of possible outcomes. a company has a large number of contracts with similar characteristics. 26. The role of the agent in a Principal-Agent relationship is to arrange for the principal to provide goods or services to a customer. provide the goods or services for a customer. market the principal goods and services to prospective customers. develop and maintain goodwill of the principal's customers. A) B) C) D)