Questions from Intermediate Accounting

Q: When does a company recognize revenue for a sale of a gift

When does a company recognize revenue for a sale of a gift card?

Q: Assume the same facts as in BE 5-22 except that

Assume the same facts as in BE 5-22 except that the trade name “Saar Associates” is not well known in the marketplace and the owner provides no advertising or other benefits to a licensee of the Saar...

Q: Explain the difference between contract assets, contract liabilities, and accounts

Explain the difference between contract assets, contract liabilities, and accounts receivable.

Q: Explain how to account for revenue on a long-term contract

Explain how to account for revenue on a long-term contract over time as opposed to at a point in time. Under what circumstances revenue should be recognized at the point in time a contract is complete...

Q: Periodic billings to the customer for a long-term construction contract

Periodic billings to the customer for a long-term construction contract are recorded as billings on construction contract. How is this account reported in the balance sheet?

Q: Assume the same facts as in BE 5-23 . How

Assume the same facts as in BE 5-23 . How much revenue will Saar recognize in 2018 under this arrangement if Saar reports under IFRS? In BE 5-23 Assume the same facts as in BE 5-22 except that the tr...

Q: GoodBuy sells gift cards redeemable for GoodBuy products either in store or

GoodBuy sells gift cards redeemable for GoodBuy products either in store or online. During 2018, GoodBuy sold $1,000,000 of gift cards, and $840,000 of the gift cards were redeemed for products. As of...

Q: Explain why, in most cases, a seller recognizes revenue when

Explain why, in most cases, a seller recognizes revenue when it delivers its product rather than when it produces the product.

Q: As of December 31, 2018, Cady Construction has one construction

As of December 31, 2018, Cady Construction has one construction job for which the construction in progress (CIP) account has a balance of $20,000 and the billings on construction contract account has...

Q: A construction company entered into a fixed-price contract to build

A construction company entered into a fixed-price contract to build an office building for $20 million. Construction costs incurred during the first year were $6 million and estimated costs to complet...