Question : 91. Firms recognize revenue A. when they have completed an earnings process or : 1230451

91. Firms recognize revenue A. when they have completed an earnings process or performed most or all of their obligations to customers, usually the delivery of a product or service.B. when they have received cash or a receivable capable of sufficiently reliable measurement. C. using the percentage-of-completion method when the firms sell products under long-term contracts, such as construction companies.D. using the completed contract method [U.S. GAAP, only] when firms cannot reasonably estimate revenues and costs.E. all of the above

92. Which of the following is true? A. Firms report accounts receivable they expect to collect within one year at the amount of cash the firms expect to receive. B. Both U.S. GAAP and IFRS require firms with significant uncollectible accounts receivable to estimate the amount of uncollectible accounts related to a particular period’s sales and recognize that amount as bad debt expense in the same period as the related revenues. C. Firms typically use a contra account to accounts receivable, such as Allowance for Uncollectibles, to reflect the amount of accounts receivable they do not expect to collect. D. The entry to recognize estimated uncollectible amounts involves a debit to Bad Debt Expense and a credit to Allowance for Uncollectibles.E. all of the above

93. Which of the following is not true? A. Firms report accounts receivable they expect to collect within one year at the amount of cash the firms expect to receive. B. Both U.S. GAAP and IFRS require firms with significant uncollectible accounts receivable to estimate the amount of uncollectible accounts related to a particular period’s sales and recognize that amount as bad debt expense in the same period as the related revenues. C. Firms typically use a contra account to accounts receivable, such as Allowance for Uncollectibles, to reflect the amount of accounts receivable they do not expect to collect. D. The entry to recognize estimated uncollectible amounts involves a debit to Bad Debt Expense and a credit to Allowance for Uncollectibles.E. The write-off of a particular customer’s account that becomes uncollectible involves a debit to Accounts Receivable and a credit to Allowance for Uncollectibles .

94. Which of the following is true? A. Acquisition cost for a merchandising firm includes the costs incurred to purchase and transport the inventory prior to sale. B. Acquisition cost for a manufacturing firm includes the direct material, direct labor, and manufacturing overhead cost to produce the inventory. C. If the market values of inventory items decline below acquisition cost prior to sale, firms must reduce their balance sheet carrying values using the lower of cost or market method.D. U.S. GAAP uses a combination of replacement cost and net realizable values to measure market value. E. all of the above

95. Which of the following is not true? A. Acquisition cost for a merchandising firm includes the costs incurred to purchase and transport the inventory prior to sale. B. Acquisition cost for a manufacturing firm includes the direct material, direct labor, and manufacturing overhead cost to produce the inventory. C. If the market values of inventory items decline below acquisition cost prior to sale, firms must reduce their balance sheet carrying values using the lower of cost or market method.D. U.S. GAAP uses a combination of replacement cost and net realizable values to measure market value. E. U.S. GAAP and IFRS permits firms to remeasure inventories upward when market value exceeds acquisition cost.

96. Which of the following is not true?.  A. Acquisition cost for a merchandising firm includes the costs incurred to purchase and transport the inventory prior to sale. B. Acquisition cost for a manufacturing firm includes the direct material, direct labor, and manufacturing overhead cost to produce the inventory. C. If the market values of inventory items decline below acquisition cost prior to sale, firms must reduce their balance sheet carrying values using the lower of cost or market method.D. if the market values of inventories increase during a period, IFRS permits firms to recognize the unrealized gain to the extent that the firm had previously recognized an unrealized loss on those inventory items. E. if the market values of inventories increase during a period, U.S. GAAP permits firms to recognize the unrealized gain to the extent that the firm had previously recognized an unrealized loss on those inventory items.

97. U.S. GAAP permits firms to measure the cost of goods sold and the amount of ending inventories for a period using the A. specific identification method.B. first-in, first-out (FIFO) cost-flow assumption.C. weighted-average cost-flow assumption.D. last-in, first-out (LIFO) cost-flow assumption.E. all of the above.

98. Firms initially record property, plant, and equipment, sometimes referred to as fixed assets, at acquisition cost, the cash paid or the fair value of other consideration given in exchange for the asset.  Which of the following is/are true? A. Acquisition cost includes all costs necessary to prepare the asset for its intended use. B. Firms capitalize into the asset’s carrying amount subsequent expenditures that extend the service life or increase the benefits of a fixed asset beyond those initially anticipated. C. Buildings and equipment have a finite life, so firms must depreciate their acquisition cost less estimated salvage over the expected service life. D. Firms may use a straight-line method or accelerated depreciation methods. E. all of the above

99. Firms initially record property, plant, and equipment, sometimes referred to as fixed assets, at acquisition cost, the cash paid or the fair value of other consideration given in exchange for the asset.  Which of the following is not true? A. Acquisition cost includes all costs necessary to prepare the asset for its intended use. B. Firms capitalize into the asset’s carrying amount subsequent expenditures that extend the service life or increase the benefits of a fixed asset beyond those initially anticipated. C. Buildings and equipment have a finite life, so firms must depreciate their acquisition cost less estimated salvage over the expected service life. D. Firms may use a straight-line method or accelerated depreciation methods. E. If new information becomes available that indicates that the expected service life or estimated salvage value differs significantly from that initially anticipated, the firm revises its depreciation claimed in prior years and restates the financial statements.

100. IFRS _____ firms to remeasure property, plant, and equipment upward for increases in fair value under certain conditions. U.S. GAAP _____ such upward remeasurements.  A. permits; permits B. permits; does not permit C. does not permit: does not permit D. does not permit: permits E. none of the above