Question

In: Accounting

1. Future costs associated with a restructuring can only be recognized if they: Select one: a....

1. Future costs associated with a restructuring can only be recognized if they:

Select one:

a. will lead to a legal obligation in the future.

b. will lead to a constructive obligation in the future.

2. A construction company has contracted with a major university to build a new sports complex. The contract calls for two sports arenas to be built in the next three years. The company will receive $24,000,000 for the project and their engineers originally estimated a total cost to construct the two arenas of $20,400,000. The two arenas are scheduled for completion in May of 2007. If an actual cost of $9,200,000 is expended in 2004, and the engineers estimate another $12,800,000 is to be expended to complete construction, how much income is to be recognized under the percentage-of-completion method in 2004?

Select one:

a. $1,163,636

b. $836,364

c. $3,600,000

d. $2,000,000

c. will lead to a constructive and legal obligation in the future.

d. will lead to a provision for restructuring cost

Solutions

Expert Solution


Related Solutions

1.Costs that we expect to incur in the future only if we go with one option...
1.Costs that we expect to incur in the future only if we go with one option instead of the other are A standard costs B noncontrollable costs C sunk costs D relevant costs 2.What does a traditional income statement have that the contribution margin income statement does NOT have? A net income B gross margin C contribution margin D All of the above 3.A company makes two products: tables and chairs. In a multi-product Cost-Volume-Profit Analysis for this company, which...
Porter Co. is analyzing two projects for the future. Assume that only one project can be...
Porter Co. is analyzing two projects for the future. Assume that only one project can be selected. Project X Project Y Cost of machine $ 66,200 $ 67,700 Net cash flow: Year 1 23,400 4,700 Year 2 23,400 30,700 Year 3 23,400 30,700 Year 4 0 23,500 The payback period in years for Project Y is
Which of the following statements is true?    Select one: a. We can only find the...
Which of the following statements is true?    Select one: a. We can only find the opening balance of Capital on the 10-column worksheet when there is no owner’s drawings. b. We can always find the opening balance of Capital on the 10-column worksheet. c. We can never find the opening balance of Capital on the 10-column worksheet. d. We can only find the opening balance of Capital on the 10-column worksheet when there is no owner’s contribution.
Antibodies are suitable for diagnostic tests, because Select one: a. they can be used only for...
Antibodies are suitable for diagnostic tests, because Select one: a. they can be used only for humans. b. they can be readily purified. c. they are found in very small quantities. d. they bind very specifically to antigens with very high affinity. e. they are found everywhere.
Assume the following 2 projects and MARR, and that you can select only one of them....
Assume the following 2 projects and MARR, and that you can select only one of them. NCF per year 0 1 2 3 4 5 Project X -120,000 40,000 48,000 56,000 64,000 72,000 Project Z -145,000 40,000 48,000 57,600 80,000 96,000 MARR 10% Fully describe the concept of Net Cash Flow per year, and why there is a “year zero” in the timeline. Describe the concept of Minimum Acceptable Rate of Return. Describe the concept of Net Present Value. Describe...
1. Making a decision on the margin means Select one: a. variable costs to fixed costs...
1. Making a decision on the margin means Select one: a. variable costs to fixed costs b. comparing total cost to total benefits c. sunk costs to total cost d. marginal revenue to marginal costs e. additional benefits to additional costs 2. Collusion is when businesses: Select one: a. have non-cooperative outcomes, because they compete outside the public eye b. agree to cooperate, and their behavior does not serve public interest c. agree to cooperate, and the U.S. government works...
Select the term that matches the concept: Market with only one seller. Select one: a. Market...
Select the term that matches the concept: Market with only one seller. Select one: a. Market with only one seller. b. Cartel c. Price Taker d. Market with only one buyer. It seems like a dumb question but I wanted a second opinion in case it was a trick
1. Adjusting entries are needed Select one: a.  only under the cash basis of accounting. b. only...
1. Adjusting entries are needed Select one: a.  only under the cash basis of accounting. b. only under a perpetual inventory system c. only under IFRS d.  to produce relevant financial information for users. e. to update accounts at the beginning of the accounting period. 2. Walmarts sells $6,250 of goods on account in the current year and collects $3,250 of this. It incurs $4,200 in expenses on account during the current year and pays $2,600 of them. Walmart would report what...
1. Interest compounding: Select one: a. calculates the present when the future is known b. calculates...
1. Interest compounding: Select one: a. calculates the present when the future is known b. calculates interest periodically c. results in less interest than simple interest d. is done only once a year 2. Present value is best defined as: Select one: a. the amount that must be invested per year and compounded at a specified rate and time to reach a specified present value b. the amount of a specified future value compounded at a specified rate which can...
1. The accrual of restructuring costs creates obligations (liabilities) referred to as exit or disposal cost...
1. The accrual of restructuring costs creates obligations (liabilities) referred to as exit or disposal cost obligations? Please answer in detail. a. obtain the relevant authoritative literature on exit or disposal cost obligation using the FASB's Codification Research System. You might gain access to the FASB website. What is the codification topic number that addresses this issue? b. What is the specific citation that addresses the initial measurement of these obligations? c. How are these obligations and related costs to...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT