F1-4, 8-9 MCQs

Question 1

In order to conform with GAAP, financial statements for public business enterprises must report segment information about a company’s major customers if that customer provides…

Answer 1

10% or more of the combined revenue, internal and external, of all operating segments.

Question 2

Deferred gross profit =

Answer 2

Installment receivable X Gross Profit %

Question 3

For nonmonetary exchanges that contain commercial substance, meaning that the amount and timing of future cash flows changes as a result of this exchange, gains and losses are recognized:

Answer 3

Immediately

Question 4

Journal entries that result when the collection of an account occurs that has previously been written off.

Answer 4

To restore the account previously written off:
DR: A/R
CR: Allowance for uncollectibels.

To record the cash collection on the account:
DR: Cash
CR: A/R