Questions from Intermediate Accounting

Q: (a) When should a note receivable be recorded at an

(a) When should a note receivable be recorded at an amount different from its face amount? (b) Describe the procedures employed in accounting for the difference between a note’s face amount and its re...

Q: When a measure of percentage of completion other than cost-to

When a measure of percentage of completion other than cost-to-cost is used, the amount of cost charged against revenue using the percentage of completion usually will be different from the costs incur...

Q: What is meant by imputing a rate of interest? How is

What is meant by imputing a rate of interest? How is such a rate determined?

Q: The gross profit percentage reported on long term construction contracts often varies

The gross profit percentage reported on long term construction contracts often varies from year to year. What is the major reason for this variation?

Q: How are anticipated contract losses treated under the completed-contract and

How are anticipated contract losses treated under the completed-contract and percentage of-completion methods?

Q: What input and output measures usually are applicable to the proportional performance

What input and output measures usually are applicable to the proportional performance method for long-term service contracts?

Q: The proportional performance method spreads the profit over the periods in which

The proportional performance method spreads the profit over the periods in which services are being performed. What arguments could be made against this method of revenue recognition for newly formed...

Q: Distinguish among the three different approaches to revenue recognition that await the

Distinguish among the three different approaches to revenue recognition that await the receipt of cash. How does the treatment of costs incurred vary depending on the approach used?

Q: Under what general conditions is the installment sales method of accounting preferred

Under what general conditions is the installment sales method of accounting preferred to the full accrual method?

Q: On the balance sheets of many companies, the largest classification of

On the balance sheets of many companies, the largest classification of assets in amount is noncurrent operating assets. Name the items, other than the amount paid to the former owner or contractor, th...