According to the recognition criteria established for revenue, revenue it normally recognized: a. During production b. At the completion of production c. At the point of talc d. When the cash is received from the customer For fixed-price construction contracts that require more than one accounting period to complete and for which the costs can be reasonably estimated, revenue should be recognized: a. During production b. At the completion of production c. When title to the project is transferred to the buyer d. When the cash is received from the buyer If collectability of the revenue is highly uncertain, an appropriate method that should be used to recognize revenue would be: a. The percentage-of-completion method b. At the point of sale c. The proportional performance method d. The installment method Using the straight-line method to depreciate equipment is an application of expense recognition using: a. Association of cause and effect b. A systematic and rational allocation method c. Immediate recognition d. The percentage-of-completion method Using an allowance method of accounting to recognize uncollectible accounts receivable is an application of which accounting convention? a. Revenue recognition b. Historical cost c. Matching principle d. Period of time The state legislature is currently debating a bill which, if passed, would require the Taylor and Brittany Company to go out of business. Which of the following principles of assumptions related to the preparation of Taylor and Brittany's financial statements is most directly affected by this impending vote of the legislature? a. Going concern assumption b. Verifiability principle c. Entity concept d. Materiality concept Under current GAAP, most resources of a business entity arc to be valued in its financial statement at: a. A value that is most relevant to the needs of users of the financial statements b. Historical cost c. The current cost of replacing the resource d. Current appraisal values