This month, a company receives $5,000 from a regular customer, of which $3,000 is for products delivered
Question:
This month, a company receives $5,000 from a regular customer, of which $3,000 is for products delivered last month and $2,000 is for products that will be delivered next month. How much revenue should the company record for this month?
1 point
0
$2,000
$5,000
$3,000
2.
Question 2
In December, a company signed a contract with a regular customer to sell products for $100,000. In January, the company received a payment of $100,000 from this customer for products to be delivered in February. Revenue regarding this transaction is recognized:
1 point
In February, when the products are delivered
In December, when the contract is signed
In January, when payment is received
Equally over the 3 months
3.
Question 3
In December, a company signed a contract with a regular customer, who has a good payment history, to sell products for $120,000. In January, the company delivered the products to the customer. The customer paid the company $120,000 in cash in February. Revenue regarding this transaction is recognized:
1 point
In December, when the contract is signed
Equally over the 3 months
In January, when the products are delivered
In February, when payment is received
4.
Question 4
This month, a company receives $5,000 from a regular customer, of which $3,000 is for products delivered last month and $2,000 is for products that will be delivered next month. What is the net change in Accounts Receivable this month (assuming no other transactions affecting Accounts Receivable)?
1 point
Increase of $2,000
Decrease of $3,000
Decrease of $5,000
No change
5.
Question 5
This month, a company receives $5,000 from a regular customer, of which $3,000 is for products delivered last month and $2,000 is for products that will be delivered next month. What is the net change in Deferred Revenue this month (assuming no other transactions affecting Deferred Revenue)?
1 point
No change
Increase of $2,000
Decrease of $3,000
Increase of $5,000
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding