QUESTION 8 Comprehensive income reports an expanded version of income to include certain types of gains and losses not included in traditional income statements True False 2 5 points QUESTION 9 Sellers recognize revenue for gift cards at the point in time control of the gift card is transferred to the customer True False 2 5 points QUESTION 10 Earnings quality refers to a the ability of management to budget for expenditures in the following year b he ability of management to sell its inventory for a profit c the ability of management to quickly collect cash from customers d the ability of reported earnings to predict a company's future earnings 2 5 points QUESTION 11 Restructuring costs typically can be defined as a costs of external financing through issuance of debt or equity securities b costs associated safeguarding a company's assets and ensuring accuracy of financial reporting c costs associated with management's plans to materially change the scope of business operations or the manner in which they are conducted d costs of expenditures made on capital projects and executive compensation 2 5 points QUESTION 12 On Oct 25 th American Airlines sold $375,000 worth of tickets electronically for various flights that would occur a month later on Thanksgiving Day The journal entry that American Airlines would record on Oct 25 th is a Db Deferred Revenue $375,000 Cr Accounts Receivable $375,000 b Db Sales Revenue $375,000 Cr Accounts Receivable $375,000 c Db Accounts Receivable $375,000 Cr Sales Revenue $375,000 d Db Accounts Receivable $375,000 Cr Deferred Revenue $375,000 2 5 points QUESTION 13 Planet Fitness Center offers discounted 2 year memberships to it gym $240 When Planet sells one of these memberships it should recognize sales revenue for this membership a ll at one time when the $240 payment is received at the beginning of the membership b Over time during the 24 month period of the membership, at $10 per month c All at one time at the end of the 24 month membership d All of the above methods are allowed by GAAP

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QUESTION 8 Comprehensive income reports an expanded version of income to include certain types of gains and losses not included in traditional income statements. True

QUESTION 8

Comprehensive income reports an expanded version of income to include certain types of gains and losses not included in traditional income statements.

True

False

2.5 points

QUESTION 9

Sellers recognize revenue for gift cards at the point in time control of the gift card is transferred to the customer.

True

False

2.5 points

QUESTION 10

Earnings quality refers to:

	a.	the ability of management to budget for expenditures in the following year.
	b.	he ability of management to sell its inventory for a profit.
	c.	the ability of management to quickly collect cash from customers.
	d.	the ability of reported earnings to predict a company's future earnings.

2.5 points

QUESTION 11

Restructuring costs typically can be defined as:

	a.	costs of external financing through issuance of debt or equity securities.
	b.	costs associated safeguarding a company's assets and ensuring accuracy of financial reporting.
	c.	costs associated with management's plans to materially change the scope of business operations or the manner in which they are conducted.
	d.	costs of expenditures made on capital projects and executive compensation.

2.5 points

QUESTION 12

On Oct. 25^th American Airlines sold $375,000 worth of tickets electronically for various flights that would occur a month later on Thanksgiving Day. The journal entry that American Airlines would record on Oct. 25^th is:

	a.	Db. Deferred Revenue $375,000 Cr. Accounts Receivable $375,000
	b.	Db. Sales Revenue $375,000 Cr. Accounts Receivable $375,000
	c.	Db. Accounts Receivable $375,000 Cr. Sales Revenue $375,000
	d.	Db. Accounts Receivable $375,000 Cr. Deferred Revenue $375,000

2.5 points

QUESTION 13

Planet Fitness Center offers discounted 2-year memberships to it gym $240. When Planet sells one of these memberships it should recognize sales revenue for this membership:

	a.	ll at one time when the $240 payment is received at the beginning of the membership
	b.	Over time during the 24 month period of the membership, at $10 per month
	c.	All at one time at the end of the 24 month membership
	d.	All of the above methods are allowed by GAAP