答案和详解如下： 6.Net construction-in-progress that will appear on the balance sheet of SC as of December 31, 2004, is:
| Completed Contract Method | Percentage-of-Completion Method |
A) $50,000 $50,000 B) $50,000 $157,143 C) $157,143 $50,000 D) $250,000 $157,143 The correct answer was B) Since completed contract method does not recognize any interim profit, the construction in progress will be recorded at $250,000. Net construction in progress under completed contract will be recorded at $50,000 [$250,000 less $200,000 (progress billings)]. The construction in progress account in the percentage of completion method will be recorded at $357,143($1 million × (250/700). Net construction in progress under percentage of completion method will be $157,143[$357,143 less $200,000 (progress billings)]. 7.According to the installment method of accounting, gross profit on an installment sale is recognized: A) on the date of sale. B) on the date the final cash collection is received. C) in proportion to the cash collection. D) after cash collections equal to the cost of sales have been received. The correct answer was C) The installment sales method recognizes sales and COGS in proportion to cash collections 8.An analyst has gathered the following data pertaining to Hegel Company’s construction projects, which began during 2002: Project 1 Project 2 Contract price $420,000 $300,000 Costs incurred in 2002 240,000 280,000 Estimated costs to Complete 120,000 40,000 Billed to customers during 2002 150,000 270,000 Received from customers during 2002 90,000 250,000 If Hengel used the completed contract method, what amount of gross profit (loss) would Hengel report in its 2002 income statement for:
A) ($20,000) $0 B) $0 ($20,000) C) ($20,000) ($20,000) D) $0 $0 The correct answer was B) No profit is recognized until the completion of the project, however losses are recognized. Project 2 has an expected loss of $20,000. 9.If Hengel used the percentage-of-completion method, what amount of gross profit (loss) would Hengel report in its 2002 income statement? A) $(20,000). B) $22,500. C) $40,000. D) $20,000. The correct answer was D) Under the percentage of completion method, $40,000 of profit is recognized for project 1. 120,000 + 240,000 = 360,000 total costs; 240,000/360,000 × 60,000 estimated profit = $40,000 profit Project 2 is running at a $20,000 loss. If the loss can be estimated the loss must be recognized at the time it is estimated. Total revenue for project 2 = 300,000 contract price - 320,000 total costs = -$20,000 estimated loss 40,000 (project 1) -20,000 (project 2) = $20,000 gross profit in 2002 10.Cash collection is a critical event for income recognition under the:
| Cost-Recovery Method | Installment Method |
A) No Yes B) No No C) Yes Yes D) Yes No The correct answer was C) Recognition of income depends on cash collected under both methods. | 
发表于 2008-4-10 10:47
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