Question $1($Mandatory$)(1$ point$)$

Which of the following is not a criterion that indicates a performance obligation is satisfied over time?

Question $1$ options:

The seller's performance does not create an asset with an alternative use to the seller and the seller has a right to payment for performance completed to date.

The customer receives control of a delivered product which has an expected useful life of many years.

The seller's performance creates or enhances an asset that the customer controls as the asset is created or enhanced.

The customer simultaneously receives and consumes the benefits of the seller's performance as the seller performs.

Question $2($Mandatory$)(1$ point$)$

A customer agrees to pay a seller over time with a promissory note. Which of the following statements related to this situation is false?

Question $2$ options:

Sellers are not required to adjust for the time value of money if the time period between the customer's payment and the company's transfer of goods or services is less than one year.

The transaction price is determined by adjusting the promised amount of future consideration to reflect the time value of money.

The objective for the adjusting for time value of money is to separate the contract into a revenue element and a financing element.

When adjusting for the time value of money, the seller should use the current prime lending rate as the discount rate.

Question $3($Mandatory$)(1$ point$)$

A company must account for a contract modification as a new contract if

Question $3$ options:

the seller has the right to receive consideration equal to the stand$-$alone selling price of the promised goods or services.

the promised goods or services are distinct and the contract has commercial substance.

the promised goods or services are distinct and separable from other goods or services promised in the original contract.

the modification adds distinct goods or services at a price that reflects their stand$-$alone selling price.

Question $4($Mandatory$)(1$ point$)$

On July $10,$ Boogie Footware agrees to a contract to sell $800$ pair of flapper shoes for $$16,000$ to Twenties, Inc. On September $1,$ after $500$ pair of have been delivered, Boogie and Twenties modify the agreement to reduce the price of the remaining $300$ pair of flapper shoes to $$10$ a pair. During September, Boogie delivers $200$ pairs of shoes. How much revenue will Boogie recognize for the month of September?

Question $4$ options:

$$1,625$

$$3,000$

$$1,375$

$$2,000$

Question $5($Mandatory$)(1$ point$)$

A $\_\_\_\_\_\_\_\_$ is an explicit or implicit promise in a contract with a customer to transfer goods or services.

Question $5$ options:

constructive liability

performance obligation

constructive obligation

liability obligation

Question $6($Mandatory$)(1$ point$)$

What type of account is Construction in Progress?

Question $6$ options:

expense

receivable

asset

contra asset

Question $7($Mandatory$)(1$ point$)$

What type of account is Partial Billings?

Question $7$ options:

liability

asset

contra asset

revenue

Question $8($Mandatory$)(1$ point$)$

A company should only apply the revenue recognition standard to contracts that meet all of the following criteria except

Question $8$ options:

the transaction price is fixed and determinable.

the contract has commercial substance.

each party's rights regarding goods and services to be transferred are identified.

collectability of consideration is probable.

Question $9($Mandatory$)(1$ point$)$

If a contract involves a significant financing component

Question $9$ options:

the time value of money is used to determine the fair value of the transaction.

the time value of money is not required to determine transaction price if the payment is more than a year after the transfer occurs.

interest is not accrued as a result of the financing component.

the transaction amount should be based on the current sales price of goods or services.

Question $10($Mandatory$)(1$ point$)$

If a contract modification does not create a separate contract, it is accounted for using

Question $10$ options:

either a cumulative catch$-$up adjustment or a retrospective approach.

either a cumulative catch$-$up adjustment, a prospective approach, or a retrospective approach.

either a cumulative catch$-$up adjustment or a prospective approach.

either a retrospective approach or a prospective approach.

Question $11($Mandatory$)(1$ point$)$

Revenue from a contract with a customer

Question $11$ options:

cannot be recognized until a contract exists.

is recognized when the customer exercises its right to provide consideration.

cannot be recognized even if the performance obligation has been satisfied.

is recognized even if the contract is wholly unperformed.

Question $12($Mandatory$)(1$ point$)$

What is the appropriate revenue recognition procedure for upfront payments received in a contract with a customer?

Question $12$ options:

defer