Far Ch 2 Timing Issues Becker

Front 1

Revenue received in advance is recorded as _____________

Back 1

LIABILITY

Front 2

Patent is amortized over the shorter of its ___________ or ____________.
What method should be used?

Back 2

ESTIMATED LIFE or REMAINING LEGAL LIFE
Straight line

Front 3

LEGAL FEES to obtain Intangible assets are ___________

Back 3

CAPITALIZED

Front 4

Culculation of Goodwill
1. purchase of assets
2. purchase of equity

Costs associated with maitaining Goodwill are ___________

Back 4

1. Cost - tangible assets - identifiable intangible assets
2. Stock price - FMV of the net asessets purchased

EXPENSED

Front 5

R&D costs are __________ as General rule

Materials, equipment and facilities are __________ if they have alternate _____________

Back 5

EXPENSED

CAPITALIZED
FUTURE USES

Front 6

IMPAIRMENT
The carring amounts of Intangibles (GW) and Fixed assets held for use and to be disposed of need to be reviewed _____________ or __________ indicate that the carrying amount may not be recoverable.

Back 6

AT LEAST ANNUALLY
WHENEVER EVENTS OR CHANGES

Front 7

The COMPLETED-CONTRACT METHOD recognizes income only __________

Back 7

ON COMPLITION OF THE CONTRACT

Front 8

The COMPLETED-CONTRACT METHOD ____________ ACCOUNTS (type)
1 A/R
2 Cost of uncompleted contracts in EXCESS of billings
3 Billings on uncomleted contacts in EXCESS of cost

Back 8

1 and 2 - Current assets
3 - Current liability

Front 9

ACCOUNTING FOR INSTALLMENT SALES
FORMULAS
1. Gross proffit =
2. Gross proffit % =
3. Earned Revenue =
4. Deffered Revenue =

Back 9

1. Sale - COGS
2. Gross proffit / Sale
3. Cash collections x Gross Profit %
4. Installement receivable x Gross Profit %