1.Noncash consideration should be

a.recognized on the basis of fair value of what is given up.

b.recognized on the basis of original cost paid by customer.

c.recognized on the basis of fair value of what is received.

d.recognized on the basis of fair value of equivalent goods or services.

2.Consideration paid or payable to customers

a.includes volume rebates which increases the cost to the customer.

b.includes discounts which reduces the cost of purchases to the company.

c.reduces the consideration received and the revenue to be recognized.

d.includes prompt settlement discount which increases revenues.

3.A transaction price for multiple performance obligations should be allocated

a.based on selling price from the company's competitors.

b.based on what the company could sell the goods for on a standalone basis.

c.based on forecasted cost of satisfying performance obligation.

d.based on total transaction price less residual value.

4.When a company has an obligation or right to repurchase an asset for an amount greater than or equal to its selling price, the transaction should be treated as a

a.outright sale.

b.financing transaction.

c.repurchase transaction.

d.put option.

5.Consigned goods are recognized as revenues by the

a.consignor when a sale to a third party has occurred.

b.consignor when the merchandise has been shipped to a consignee.

c.consignee when a sale to a third party has occurred.

d.consignor when it receives payment from consignee for goods sold.

6.Entertainment Tonight, Inc. manufactures and sells stereo systems that include an assurance-type warranty for the first 90 days. Entertainment Tonight also offers an optional extended coverage plan under which it will repair or replace any defective part for 2 years beyond the expiration of the assurance-type warranty. The total transaction price for the sale of the stereo system and the extended warranty is3,000. The standalone price of each is2,300 and900, respectively. The estimated cost of the assurance-warranty is350. The accounting for warranty will include a

a.debit to Warranty Expense,900.

b.debit to Warranty Liability,350

c.credit to Warranty Liability,900

d.credit to Unearned Warranty Revenue,900