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
E
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The definition of a conglomerate is a company that operates in one industry and uses different inventory valuation techniques
a. True b. False Indicate whether the statement is true or false
An instrument which reads "For deposit only" is an example of a ________ indorsement.
A. restrictive B. blank C. qualified D. special
Whether exchanging similar or dissimilar assets, accounting for the transaction is the same
Indicate whether the statement is true or false
Russell and Joe make a contract for Russell to manufacture five leather chairs of a specified design. Prior to their manufacture, the factory is destroyed in an accidental fire that is no one's fault. If the chairs are available from other sources:
a. Russell must supply the chairs, even if he must buy them elsewhere. b. Russell's duty to deliver the chairs is discharged by the destruction of the factory. c. Russell has materially breached the contract if he fails to deliver the chairs. d. (a) and (c) are correct.