Question 1 of 14 2 Points The second step in the five-step revenue recognition process is: O A. identify the contract with the customer OB. recognize revenue when each performance obligation is satisfied OC. identify the separate performance obligations in the contract OD. determine the transaction price Reset Selection Marle Construction enters into a contract with a customer to build a warehouse for $950,000 on March 30, 2018 with a performance bonus of $50,000 if the building is completed by July 31, 2018. The bonus is reduced by $10,000 each week that the building is delayed. Marle commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: 65% probability it will be completed by July 31, 2018 25% probability it will be completed by August 7, 2018 5% probability it will be completed by August 14, 2018 5% probability it will be completed by August 21, 2018. The transaction price for this transaction, based on the most likely outcome method, is: A. $995,000 OB. $950,000 OC. $1,000,000 OD. $985,000 Reset Selection Harold Corporation has an existing contract to sell 200 units of product to a customer at $10 each. After the delivery of 150 units, the customer wants to extend the contract for an additional 100 units. The price quoted for these additional units is $9.50 each (standalone price) and they can be identified separately. The revenue recorded by Harold for the delivery of the next 15 units of product to this customer is: O A. $150.00 B. $145.00 OC. $142.50 OD. $147.50 Reset Selection 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. sales return O B. financing transaction OC. consignment transaction OD. sales transaction Reset Selection Consigned goods are recognized as revenue by the O A. consignor when a sale to a third party has occurred O B. consignee when a sale to a third party has occurred OC. consignor when the merchandise has been shipped to a consignee OD. consignor when notified of a sale by the consignee Reset Selection Question 6 of 14 2 Points When a customer purchases a product but is not yet ready to take delivery, this is referred to as: O A. a repurchase agreement OB. a consignment OC. a bill and hold arrangement OD. a principal-agent relationship Reset Selection