Homework Help is Here – Start Your Trial Now!
Business
Accounting
REVENUE RECOGNITION QUIZ 1. True or false: The new revenue recognition standard is aimed at a few industries and will not affect most companies 2. True or false: Revenue recognition under U.S. GAAP and IFRS will now be identical 3. Choose all that apply: The industries most impacted by the standard are: A. Pharmaceutical B. Retail C. Media and tele com D. Consumer staples E. Software F. Aerospace and defense 4. True or false: The identification of customer contracts and related performance obligations are key to the standard 5. True or false: Companies must restate the income statements for prior years to show application of the new standard. 6. Choose all that apply: Transactions excluded from the standard include: A. Lease contracts B. Insurance contracts C. Financial instruments D. Guarantees (other than product warranties) E. Certain nonmonetary exchanges F. Contracts with parties other than customers (e.g., collaborations) 7. True or false: Comparability across companies will be enhanced since ASC 606 provides clear rules, by industry, for when and how to recognize revenues. 8. Choose all that apply: The following ratios may be impacted by adoption of the new standard: A. Revenue growth B. Net margin C. Return on equity D. Price to earnings multiples E. Return on assets F. Debt to equity G. Current ratio

REVENUE RECOGNITION QUIZ 1. True or false: The new revenue recognition standard is aimed at a few industries and will not affect most companies 2. True or false: Revenue recognition under U.S. GAAP and IFRS will now be identical 3. Choose all that apply: The industries most impacted by the standard are: A. Pharmaceutical B. Retail C. Media and tele com D. Consumer staples E. Software F. Aerospace and defense 4. True or false: The identification of customer contracts and related performance obligations are key to the standard 5. True or false: Companies must restate the income statements for prior years to show application of the new standard. 6. Choose all that apply: Transactions excluded from the standard include: A. Lease contracts B. Insurance contracts C. Financial instruments D. Guarantees (other than product warranties) E. Certain nonmonetary exchanges F. Contracts with parties other than customers (e.g., collaborations) 7. True or false: Comparability across companies will be enhanced since ASC 606 provides clear rules, by industry, for when and how to recognize revenues. 8. Choose all that apply: The following ratios may be impacted by adoption of the new standard: A. Revenue growth B. Net margin C. Return on equity D. Price to earnings multiples E. Return on assets F. Debt to equity G. Current ratio

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 1C: Prior to ASU 2014-09 changing the principles underlying revenue recognition, companies recognized...
See similar textbooks
icon
Related questions
Question

Why  Question#7's answer is "false"? 

Provide your own answer?

 

REVENUE RECOGNITION QUIZ 1. True or false: The new revenue recognition standard is aimed at a few industries and will not affect most companies 2. True or false: Revenue recognition under U.S. GAAP and IFRS will now be identical 3. Choose all that apply: The industries most impacted by the standard are: A. Pharmaceutical B. Retail C. Media and tele com D. Consumer staples E. Software F. Aerospace and defense 4. True or false: The identification of customer contracts and related performance obligations are key to the standard 5. True or false: Companies must restate the income statements for prior years to show application of the new standard. 6. Choose all that apply: Transactions excluded from the standard include: A. Lease contracts B. Insurance contracts C. Financial instruments D. Guarantees (other than product warranties) E. Certain nonmonetary exchanges F. Contracts with parties other than customers (e.g., collaborations) 7. True or false: Comparability across companies will be enhanced since ASC 606 provides clear rules, by industry, for when and how to recognize revenues. 8. Choose all that apply: The following ratios may be impacted by adoption of the new standard: A. Revenue growth B. Net margin C. Return on equity D. Price to earnings multiples E. Return on assets F. Debt to equity G. Current ratio
Transcribed Image Text:REVENUE RECOGNITION QUIZ 1. True or false: The new revenue recognition standard is aimed at a few industries and will not affect most companies 2. True or false: Revenue recognition under U.S. GAAP and IFRS will now be identical 3. Choose all that apply: The industries most impacted by the standard are: A. Pharmaceutical B. Retail C. Media and tele com D. Consumer staples E. Software F. Aerospace and defense 4. True or false: The identification of customer contracts and related performance obligations are key to the standard 5. True or false: Companies must restate the income statements for prior years to show application of the new standard. 6. Choose all that apply: Transactions excluded from the standard include: A. Lease contracts B. Insurance contracts C. Financial instruments D. Guarantees (other than product warranties) E. Certain nonmonetary exchanges F. Contracts with parties other than customers (e.g., collaborations) 7. True or false: Comparability across companies will be enhanced since ASC 606 provides clear rules, by industry, for when and how to recognize revenues. 8. Choose all that apply: The following ratios may be impacted by adoption of the new standard: A. Revenue growth B. Net margin C. Return on equity D. Price to earnings multiples E. Return on assets F. Debt to equity G. Current ratio
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Avoiding and Correcting Credit Mistakes
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS