Which of the following statements about the Initial recording of a llability is true?Multiple ChoiceIt is measured in terms of current cesh equivalent.It is only recorded if it must be paid within the current operating cycle or ane year, whichever is longer.It is reported as current.It is reported as long-term.

The question is multiple choice question. Required Choose the Correct Option.

Answered: Which of the following statements about…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 1MC: Which of the following is any reporting period shorter than a full year (fiscal or calendar) and can...

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Which of the following is any reporting period shorter than a full year (fiscal or calendar) and can encompass monthly, quarterly, or half-year statements? A. fiscal year B. interim period C. calendar year D. fixed year
Discuss generally how revenue should be recognized at interim dates and specifically how revenue should be recognized for industries subject to large seasonal fluctuations in revenue and for long-term contracts using the percentage-of-completion method at annual reporting dates.
If at the end of the second year of a 4-year contract, a company determines total estimated costs are going to exceed the contract price, it immediately recognizes the total estimated loss. it recognizes the total estimated loss in the year of completion if it is using the point-in-time method. it spreads the estimated loss over the remaining two years if it is using the recognizing-revenue-over-time method. it treats the estimated loss as a change in accounting estimate.
How should material seasonal variations in revenue be reflected in interim financial statements?a. The seasonal nature should be disclosed, and the interim report should be supplemented with a report on the 12-month period ended at the interim date for both the current and preceding years.b. The seasonal nature should be disclosed, but no attempt should be made to reflect the effect of past seasonality on financial statements.c. The seasonal nature should be reflected by providing pro forma financial statements for the current interim period.d. No attempt should be made to reflect seasonality in interim financial statements.
Sullivan’s receivable turnovers at December 31, 2020 and 2021 were 7 and 7.5, respectively. Select the correct option for whether the change in the ratio for Sullivan was favourable or unfavourable.
Which of the following is correct about non-trade receivables being classified as current assets?a. non-trade receivables are classified as current assets if these are collectible within one year or the company's normal operating cycle. whichever is shorter.b. non-trade receivables are classified as current assets if these are collectible within the company's normal operating cyclec. non-trade receivables are classified as current assets if these are collectible within one yeard. non-trade receivables are classified as current assets if these are collectible within one year or the company's normal operating cycle, whichever is longer.e. non-trade receivables are never classified as current assets.
What amount of RGP should be reported for the current year if the percentage of completion method is used for all contracts?
The liability that can be paid for more than one year is known as __. a. Non-current asset b. Long-term liability c. Current liability d. Revenue
Current liabilities are obligations where liquidation is reasonably expected to require the use of existing current assets or the creation of other current liabilities within: A. one year. B. one year or one operating cycle, whichever is longer. C. one year or one operating cycle, whichever is shorter. D. an operating cylce.
Assuming the requirements for recognizing revenue over time are met, the profit to be recognized in any year is based on the completion ratio of: incurred contract costs divided by estimated total contract costs. incurred contract costs multiplied by estimated total contract costs. estimated total contract costs divided by incurred contract costs. estimated total contract costs multiplied by incurred contract costs.
When accounting for revenue over time for a long-term contract, the percentage of completion used to recognize revenue in the first year usually is determined by measuring: A. Cost incurred in the 1st year, divided by estimated remaining cost to complete the project. B. Cost incurred in the 1st year, divided by estimated total cost for the completed project. C. Cost incurred in the 1st year, divided by estimated gross profit. D. Cost incurred in the 1st year, divided by estimated total cost to be incurred in the remaining years of the project.
Prior (Past) service cost is included among OCI items in the statement of comprehensive income and thus subsequently becomes part of AOCI where it is amortized over the average remaining service period using a. U.S. GAAP. b. IFRS. c. Both U.S. GAAP and IFRS. d. Neither U.S. GAAP nor IFRS.

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