Recording and Evaluating Revenue Process Activities 5E

Chapter 10 - Recording and Evaluating Revenue Process Activities

Chapter 10

Recording and Evaluating Revenue Process Activities 5e

Name ______

Team ______

Test/Retest #10A

1. A revenue can be recognized:

a. after cash is received

b. before cash is received

c. concurrent with cash received

d. all of the above

2. Net sales is equal to

a. sales less sales discounts and less sales returns and allowances

b. sales less sales discounts but plus sales returns and allowance

c. sales plus sales discounts and plus sales returns and allowances

d. sales plus uncollectible accounts expense

3. Accounts receivable, net, is reported on the

a. balance sheet

b. income statement

c. statement of cash flows

d. statement of owners’ equity

4. Net sales are reported on the

a. balance sheet

b. income statement

c. statement of cash flows

d. statement of owners’ equity

5. If the actual selling price is greater than the budgeted selling price, the sales price variance would be:

a. favorable

b. unfavorable

c. zero

d. cannot be determined without knowing how many units were sold

6. If the actual number of units sold were greater than the budgeted number of units, the sales quantity variance would be:

a. favorable

b. unfavorable

c. zero

d. cannot be determined without knowing the selling price

7. If the accounts receivable account increases, cash receipts from customers are:

a. greater than net sales

b. less than net sales

c. equal to net sales

d. any of the above is possible

8. When a company uses the FIFO cost flow assumption, it charges (allocates, expenses) costs to costs of goods sold in:

a. chronological order

b. random order

c. reverse chronological order

d. specifically identified order

9. When a company uses the LIFO cost flow assumption in a period of rising prices, cost of goods sold will be ______than if the company had used the FIFO cost flows assumption.

a. higher

b. lower

c. the same

d. cannot be determined

10. Accounts receivable, net, is calculated as:

a. accounts receivable less sales discounts

b. accounts receivable less cash received from customers

c. accounts receivable less allowance for uncollectible accounts

d. accounts receivable less accounts payable

10A-1