Midterm study SE & RR

Question 1

a company has satisfied its performance obligation to provide goods or perform services when the company has

Answer 1

transferred physical possession of the asset

Question 2

accounts included in stockholders equity

Answer 2

preferred dividends declared, common dividends declared, unrealized holding loss (net of tax), retained earnings, common stock, accumulated other comprehensive income

Question 3

when determining the allocation of performance obligations the first step is to

Answer 3

find the amount of how much it would’ve cost without it “bundled”

Question 4

the second step in finding the allocation of the performance obligations is to

Answer 4

fair value / total amount would’ve paid separately

Question 5

final step in determining the allocation of performance obligations is

Answer 5

multiply total transaction price by ratio in step 2

Question 6

understated expense

Answer 6

added to retained earnings

Question 7

discontinued operations appears in the statement of stockholders equity

Answer 7

false

Question 8

a transaction price for multiple performance obligations should be allocated based on

Answer 8

what the comps could sell the goods for in a standalone basis