Q21. Which, if any, of the following statements about the installment sales method and cost recovery method is correct? A) The cost recovery method recognizes revenue and associated costs of goods sold only when cash is received, based on gross profit margin. B) Neither statement is correct. C) Both statements are correct.
Q22. An oil exploration company has been contracted to dig 100 exploratory holes for $200,000. The cost to complete this job is estimated to be $150,000, but the company doesn’t recognize any of the $50,000 profit until the job is completed. Which revenue recognition method is being used? A) Completed contract method. B) Cost recovery method. C) Percentage-of-completion method.
Q23. Which revenue recognition method is used when the payment is assured and revenue is earned as costs are incurred? A) Installment sales method. B) Cost recovery method. C) Percentage-of-completion method.
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发表于 2009-1-17 09:05
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