$\frac{0}{3\mathrm{.}5}$ points

When the cash proceeds from a bond issued with detachable stock warrants exceed the sum of the par value of the bonds and the fair value of the warrants, the excess should be credited to

retained earnings.

a liability account.

premium on bonds payable.

$\frac{0}{3\mathrm{.}5}$ points

The use of the net method of recognizing revenue by an agent

is appropriate as long as both revenue and costs are included.

could result in an understatement of the agent's revenue.

is the correct method in a principal$-$agent relationship.

could result in an overstatement of the agent's revenue.

$0/3\mathrm{.}5$ points

A transaction price for multiple performance obligations should be allocated

based on total transaction price less residual value.

based on the selling price from the company's competitors.

based on what the company could sell the goods for on a standalone basis.

based on the forecasted cost of satisfying the performance obligation.