26. RealMoney.Com provides investment advice to customers for an upfront fee. It provides these customers with password-protected access to its Website where customers can download investment report. RealMoney has an obligation to provide updates on this Website. When RealMoney can recognize the upfront fee as revenue?

A) When the company receives the money

B) Ratably over the period of time that customers can access its Website

C) When the company update its Website

D) When the customer starts to access the Website

27. Oracle Corp. develops general ledger and other business application software that it sells to its customers. The customer pays an up-front fee for the right to use the software and a monthly fee for support services. When Oracle Corp. can recognize the upfront fee as revenue?

A) When the company receives the money

B) Ratably over the period of time that the company provides monthly services

C) When the software is installed

D) When the company stops to provide monthly services

30. On its 2011 income statement, Yahoo! reported Product development expense of $1,005,090. Which of the following statements must be true?

A) Yahoo spent $1,005,090 in cash to develop new products and improve old products.

B) Product development expense reduced Yahoos 2011 net income by $1,005,090.

C) Yahoo capitalized at least $1,005,090 of product development costs in 2011.

D) The $1,005,090 included amortized product development costs from prior years that were not previously expensed, because Yahoo incurs such expenses each year.

E) None of the above

32. Intelligentsia Corp. recorded restructuring charges of $157,028 thousand during fiscal 2012 related entirely to anticipated employee separation payments. Intelligentsia had never before incurred restructuring charges. At the end of the year, the companys balance sheet included a restructuring accrual of $19,762. The cash flow effect of Intelligentsias restructuring during fiscal 2012 was:

A) $19,762 thousand

B) $157,028 thousand

C) $176,790 thousand

D) $137,266 thousand

E) None of the above

34. If managers have great discretion on allowance for uncollectible account, which of the following statements is true?

A) ART=Sales/Average AR, Gross is a better measure than ART=Sales/Average AR, Net

B) ART=Sales/Average AR, Net is a better measure than ART=Sales/Average AR, Gross

C) They are the same

D) Cannot determine

35. Which of the following statements regarding property, plant, and equipment turnover is true?

A) PPET=Sales/Avg. PPE, Net is a better measure than PPET=Sales/Avg. PPE. Gross

B) PPET=Sales/Avg. PPE, Gross is a better measure than PPET=Sales/Avg. PPE. Net

C) There is no big difference

D) Cannot determine

36. In a rising price environment, which of the following is true?

Net Income Ending Inventory

A) FIFO High High

B) LIFO High Low

C) FIFO Low High

D) LIFO Low High

37. LIFO reserve decreases from 2014 to 2015. How to interpret this change?

A) Inventory prices increase in 2015

B) Inventory prices decrease in 2015

C) There is nothing to do with inventory prices

D) Cannot determine