1)A discrete earnings process often

includes a critical event.

includes confidential information.

requires that revenues can only be recognized after full payment has been received.

requires that goods be sold at a substantial discount.

2)Which of the following is typically not a characteristic of a constructive obligation?

It is a term that is explicitly stated in the contract.

It may be created through past practice or experience.

It may be created though a signal to potential customers.

It is not legally enforceable.

3

On May 31, 2020, Eisler Company consigned 80 freezers, costing $500 each, to Remmers Company. The cost of shipping the freezers amounted to $740 and was paid by Eisler Company. On December 30, 2020, a report was received from the consignee, indicating that 40 freezers had been sold for $750 each. Remittance was made by the consignee for the amount due after deducting a commission of 6%, advertising of $200, and total installation costs of $320 on the freezers sold.

Calculate the inventory value of the units unsold in the hands of the consignee.

Inventory value of units unsold

$enter the Inventory value of units unsold in dollars

LINK TO TEXT

Calculate the profit for the consignor for the units sold.

Profit on consignment sales

$enter the Profit on consignment sales in dollars

LINK TO TEXT

Calculate the amount of cash that will be remitted by the consignee.

Remittance from consignee

$enter the Remittance from consignee in dollars

4

f an entity sells on credit, the risk that the customer will not pay is called

credit policy.

credit risk.

commercial substance.

price risk.

5

Where there are potentially multiple performance obligations within a single contract, if products or services are interdependent and interrelated, they must be

combined under a new contract.

accounted for as multiple performance obligations.

sold separately.

combined and reported as a single performance obligation.

This is intermediate accounting qustion