ACCT 370 Connect Smartbook Assignment 3 solutions complete answers

ACCT 370 Connect Smartbook Assignment 3 solutions complete answers 

 

Which of these factors is the distinguishing characteristic of a sale of intellectual property, as opposed to a license?

 

Which of the following entities would be considered a principal?

 

A             conveys a right to access certain intellectual property, such as trade names.

 

A             is a promise to provide goods or services.

 

Capitalized contract costs need not be amortized if the amortization period would be

 

A change in the scope and/or price of a contract is referred to as a            .

 

A customer option is generally considered a separate performance obligation under which of the following scenarios?

 

Determining the extent to which revenue should be recognized based on the costs incurred to date as a percentage of costs to be incurred in total is an example of an       method.

 

Determining the extent to which revenue should be recognized based on the milestones reached to date is an example of an       method.

 

The final step in the five-step revenue recognition model is to

 

The first step in the five-step revenue recognition model is to

 

How are contract costs amortized?

 

If a contract modification adds distinct goods or services in which the incremental contract price is commensurate with the stand-alone price for the additional goods or service, the additional goods or services are

 

If a contract modification does not add goods or services that are distinct from those that have already been transferred,

 

If an entity receives payment prior to satisfying its performance obligation under a contract, the discrepancy between when the payment is received and when the obligation is satisfied is considered

 

In which of the following cases is a performance obligation not considered to have been satisfied over time?

 

Match the approach for making a transaction price allocation to its definition.

 

The portion of a gift card that is expected never to be redeemed is called      .

 

A price concession exists when

 

Firms are required to disclose

 

If a firm receives payment before a contact can be identified, revenue may be recognized when the consideration is nonrefundable and

 

What criteria must be present for consideration due to a customer to be treated as a separate transaction involving a purchase of goods or services from the customer?

 

When a right of return exists, the estimated returns will affect

 

Which of the following are characteristics of a "distinct" performance obligation?

 

Which of the following are considered separate performance obligations?

 

Which of the following are criteria required for control to be considered transferred in bill-and-hold arrangements?

 

Which of the following are indicators that a firm is an agent rather than a principal?

 

Which of the following are possible purposes of providing a warranty?

 

Which of the following are required for two or more contracts to be treated as a single contract?

 

Which of the following are required to be disclosed regarding contract balances?

 

Which of the following contract costs are capitalized?

 

Which of the following criteria are needed for a customer option to be considered a separate performance obligation?

 

Which of the following criteria must be met for a contract modification to be considered a new, separate contract?

 

Which of the following statements apply to a right of return?

 

True or false: A contract modification may be treated as a new contract or as part of an existing contract.

 

True or false: An agent may recognize revenue when its obligation to the principal is complete, even if the principal has not yet fulfilled its obligation to its customer.

 

True or false: A significant financing component can be either the customer financed by the firm or vice versa.

 

True or false: A significant financing component can occur even when the performance obligation is satisfied at the same time payment is made.

 

True or false: Contracts have to be written to be legally enforceable.

 

True or false: There is a collection loss any time the amount collected is less than the list price of a good or service.

 

True or false: Two contracts entered into around the same time with the same customer are automatically considered a single contract under ASC Topic 606.

 

True or false: When a price change occurs, it can impact the revenue recognized for performance obligations.

 

True or false: When the price associated with a variable consideration transaction changes in a subsequent period, the new, more recent information is used, which could affect the amount of revenue recognized in the subsequent period.

 

What is a portfolio approach?

 

What is a practical expedient?

 

What is the fundamental nature of revenue recognition for gift cards?

 

What is the minimum number of categories in which revenue is required to be disaggregated?

 

When       over the goods and services that comprise the performance obligation is transferred to the customer, that performance obligation is considered satisfied.

 

When a contract asset is written down because it is deemed to be impaired,

 

When a firm delivers goods to another party but retains control over them, a             exists.

 

When a license exists, which of the following criteria is not necessary for the customer to be considered as having the right to access intellectual property as it exists at any point in time?

 

When an estimated transaction price changes, what are the likely consequences?

 

When breakage on a gift card is expected and the unused balance need not be handed over to the state, breakage revenue may be recognized

 

When is consideration due to a customer treated as a separate transaction involving a purchase of goods or services from the customer?

 

When is interest accrued on a significant financing component?

 

When the customer has the right to access intellectual property as it exists at any point in time, which of the following statements is true?

 

When there is variable consideration, how is the transaction price determined?

 

Where is revenue disaggregation disclosed?

 

Which of the following conveys a right to access certain intellectual property, such as trade names.

 

Which of the following exists when a firm bills a customer for goods but retains physical possession at the customer's request?

 

Which of the following is not an indicator that a consignment arrangement has been made?

 

Which of the following is not an indicator that control of goods or services has been transferred to the customer?

 

Which of the following is not qualitative information required to be disclosed regarding performance obligations?

 

Which of the following is not required to be disclosed related to contract balances?

 

Which of the following would be considered a contract subject to ASC Topic 606?

 

Which of the following would be considered a customer under ASC Topic 606?

 

Which one of the following statements applies to transaction price allocations?

 

Why would the existence of termination rights lead to the conclusion that no contract exists for purposes of ASC Topic 606, even though there is a contract?