Multiple choice accounting questions.

Assume the following facts regarding the construction of a bridge: Construction costs this period - 3,000,000 Total estimated construction costs - 10,000,000 Total sales price -15,000,000 The revenue that should be recognized this period is: Select one or more a 6,500,000 b. 4,500,000 c 5,000,000 d 3,000,000 Exceptions to the realization principle include the installment basis of revenue recognition for sales revenue and the completed contact method for long-term construction projects Select one: True False At the end of the accounting period, three trial balances are prepared Select one O True False The conceptual framework project resulted in identifying two primary qualitative characteristics that accounting information should posses relevance and reliability Select one True False The underlying assumptions of accounting includes all the following except: Select one or more a Going concem. b. Money measurement and periodicity c Business entity d. Matching Which of the following statements is false regarding the revenue recognition principle? Select one or more: a. Some small companies use the cash basis of accounting b. Under the installment basis, the gross margin recognized in a period is equal to the amount of cash received from installment sales times the gross margin percentage for the year of sale c The accountant usually recognizes revenue before the seller acquires the nght to receive payment from the buyer d. Revenue must be substantially earned before it is recognized