Far Ch 2F Matrix Revenues Cost And Expense

Front 1

SALAVAGE value is not used in calculating ___________ using ________ method of depreciation.
BUT the asset cannot be depreciated below __________

Back 1

DEPRECIATION EXPENSE
DOUBLE-DECLINING METHOD
SALVAGE VALUE

Front 2

The ROYALTIES should be recognized as revenue in the period ___________

Back 2

EARNED

Front 3

the Gain/Loss from the settlemtn of the lawsuit would be properly included in ________________

Back 3

INCOME FROM CONTINUING OPERATIONS

Front 4

For a LESSEE (me)
the last month's rent is capitalized as _________ and expensed the last month of the lease term.
The refundable SECURITY DEPOSIT IS___________

Back 4

PREPAID RENT
AN ASSET

Front 5

The proceeds from a life insurance policy held by Corp. on the offecer LESS the ____________ should be reported by Corp as a GAIN REVENUE

Back 5

Carrying amount (CASH SURRENDER VALUE)

Front 6

Sales should be adjusted for the expected ___________ ONLYas an allowance __________ sales

Back 6

RETURNS
REDUCING

Front 7

Under the cost method, dividends are recognized as Income when ___________

Back 7

RECEIVED

Front 8

Cash revenue =

Back 8

Cr sale + Cash sale - discounts + A/R decrease - A/R increase

Front 9

Depletion per unit =
Depletion in the C/Y =

Back 9

Capitalized cost / Total estimated units economically recoverable
Deplition per unit x units extracted in C/Y

Front 10

DEFFERED GROSS PROFIT =

Back 10

Cash to be collected x Gross Profit Rate

Front 11

The cash surrender value of a whole-life insurance policy represents an amount that __________________________ = to
If the company is both the OWNER and BENEFICIARY of the policy, the cash surrender value is an ______________ to the Co.

Back 11

can be recovered if the policy is canceled.
ASSET = Anual premium less Expense

Front 12

How to calc. INTEREST INCOME on the NO % N/P for $$$

Back 12

INTEREST INCOME= PV OF $$$ x Current Interest Rate

Front 13

Rate of Return on assets

Back 13

Net income / Average assets

Front 14

A COMPLETED-CONTRACT METHOD is method of accounting for lont-term contracts under which Income is recognized only in ______________

COSTS are recorded as ASSETS or LIAB

Back 14

THE YEAR OF COMPLITION

COST
(BILLINGS)
_______________________________
ASSET or (LIABILITY)

Front 15

Under the Completed- contract method
The Profit is ________
The Loss is __________
on the F/S

Back 15

Not reported
RECOGNIZED IMMEDIATLY
TOTAL COST
(CONTRAC PRICE)
_________________
GAIN / (LOSS)

Front 16

COMPOSITE (dissimilar assets) and GROUP ( simmilar assets ) methods of depreciation are based on __________ type of Depr.

Back 16

S/L

Front 17

How to calc profit/loss on
PERCENTAGE-OF-COMPLITION METHOD?

Back 17

% COMPLETED = TOTAL COST/ ESTIMATED COSTS
X CONTRACT PRICE
(CY COSTS)
__________________
GROSS PROFIT

if LOSS - the entire amount is recognized

Front 18

Gross profit rate =

Back 18

(Sale - Cost) / Sale

Front 19

JE by DEBTOR on liquidation of debt though transfer of asset

Back 19

DR NOTE PAYABLE
DR LOSS on transfer ( FMV less CV of asset)
--------- CR ASSET @ CV
_____ CR Extraordinary gain - restructure of debt (N/P less FMV of asset)

Front 20

Transportation to consingnee is ( included/excluded from)
___________

Back 20

included in COGS

Front 21

% of completion Yr 3 income =

Back 21

(Total cost incurred to date / total estimated cost) x GP
less Income recognized in prior years

Front 22

Under the cost method, dividends are recorded as income (revenue) when the dividends is

Back 22

DECLARED

Front 23

The liqudating dividend is recorded as ________________

Back 23

return OF INVESTMENT
it is NOT income