Categories

ACCT 382 - Week 5 - Chapter 5 Homework - Question 6

ACCT 382 - Week 5 - Chapter 5 Homework - Question 6
Price: $4.99
This Tutorial contains following Attachments
  • ACCT 382 - Week 5 - Chapter 5 Homework - Question 6.doc
Qty:     - OR -   Add to Wish List

ACCT 382 - Week 5 - Chapter 5 Homework - Question 6

There may be chances that the figures given in our question and your question doesn't matches. Don't worry, we are here to help you. Just write to us at studentwhiz@gmail.com and your answer is with you in no time.

 

Question 6

Listed below are several terms and phrases associated with revenue recognition and profitability analysis.

Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it.

 

 

 
   

List A

 

List B

 

1.

Inventory turnover

 

Net income divided by net sales.

 

2.

Return on assets

 

Defers recognition until cash collected equals cost.

 

3.

Return on shareholders’ equity

 

Defers recognition until project is complete.

 

4.

Profit margin on sales

.

Net income divided by assets.

 

5.

Cost recovery method

 

Risks and rewards of ownership retained by seller.

 

6.

Percentage-of-completion method

 

Contra account to construction in progress.

 

7.

Completed contract method

 

Net income divided by shareholders’ equity.

 

8.

Asset turnover

 

Cost of goods sold divided by inventory.

 

9.

Receivables turnover

 

Recognition is in proportion to work completed.

 

10.

Right of return

 

Recognition is in proportion to cash received.

 

11.

Billings on construction contract

 

Net sales divided by assets.

 

12.

Installment sales method

 

Net sales divided by accounts receivable.

 

13.

Consignment sales

 

Could cause the deferral of revenue recognition beyond delivery point.