Question
Sometimes experts give the wrong answer, so I'm just posting the right answer below. 3. Question : (TCO A) Blue Suede Construction Corp used the
Sometimes experts give the wrong answer, so I'm just posting the right answer below.
3. Question : (TCO A) Blue Suede Construction Corp used the percentage-of-completion method of revenue recognition. They were contracted to build the new amphitheater for $800000. Additional information was provided:
As of Dec 31. 2012 2013
Percentage of completion 15% 40%
Estimated total expected costs $550,000 $580,000
Gross profit recognized (Cumulative) $50,000 $99,000
Contracted costs incurred during 2013 were
Student Answer: INCORRECT $145,000
CORRECT $149,500
Instructor Explanation: Chapter 18. Points Received: 0 of 5 Comments: Question
4. Question : (TCO A) Revenue should NOT be recognized at the time of sale if
Student Answer: INCORRECT goods were purchased with a credit card payment
CORRECT the buyer has sixty days to return the goods and the amount of future returns cannot be estimated the selling price is substantially less than the normal selling price none of the above
Instructor Explanation: Chapter 18 Points Received: 0 of 5 Comments:
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