Exam$-2$ Set $-A$

Time: $150$ minutes

Name: Georyes

$ID$: $6275836$

$\frac{\text{C}\text{h}\text{r}\text{i}\text{s}\text{t}\text{i}\text{a}\text{n}}{\text{F}\text{i}\text{s}\text{t}}$

Section:

$35$ Multiple Choices $x2$ Points $=70$ Points

Problem #$1=12$ Points

Problem #$2=18$ Points

Multiple choices $(Choose$ the best possible answer among the alternatives$).$

A contract liability $is$ a company's obligations $to$ transfer goods $or$ services $to$ a customer for

which the company has received consideration from the customer. $An$ example $of$ a contract

liability $is$

$A.$ Prepaid subscription.

$B.$ Unearned rent revenue.

$C.$ Mortgage Payable.

$D.$ Service Revenue.

$On$ August $5,2021,$ Famous Furniture shipped $40$ dining sets $on$ consignment $to$ Furniture

Outlet, Inc. The cost $of$ each dining set was $$350$ each. The cost $of$ shipping the dining sets

amounted $to$ $$1,800$ and was paid for $by$ Famous Furniture. $On$ December $30,2021,$ the consignee

reported the sale $of30$ dining sets $at$ $$850$ each. The consignee remitted payment for the amount

due after deducting $a6\%$ commission, advertising expense $of$ $$600,$ and installation and setup costs

$of$ $$780.$ The total profit $on$ units sold for the consignor $is$

$A.$ $$22,590$

$B.$ $$10,290$

$C.$ $$12,090$

$D.$ $$19,890$

$In2024,$ Cupid Construction Company $(CCC)$ began work $on$ a two$-$year fixed price contract

project. $CCC$ recognizes revenue over time according $to$ percentage $of$ completion for this contract,

and provides the following information $(dollarsin$ millions$)$:

Accounts receivable,$\frac{12}{31}\frac{?}{2024}(from$ construction progress billings$)$ $$37\mathrm{.}6$

Actual construction costs incurred $in2024,$$$161$

Cash collected $on$ project during $2024,$$$106$

Construction $in$ progress, $\frac{12}{31}\frac{?}{2024}$$$238$

Estimated percentage $of$ completion during $2024,70\%$

What $is$ the fixed contract price for $CCC\text{'}s$ project?

$A.$ $$110$ million

$B.$ $$340$ million

$C.$ $$381\mathrm{.}6$ million

$D.$ $$230$ million