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9 Cards in this Set
- Front
- Back
Revenue received in advance is recorded as _____________
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LIABILITY
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Patent is amortized over the shorter of its ___________ or ____________.
What method should be used? |
ESTIMATED LIFE or REMAINING LEGAL LIFE
Straight line |
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LEGAL FEES to obtain Intangible assets are ___________
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CAPITALIZED
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Culculation of Goodwill
1. purchase of assets 2. purchase of equity Costs associated with maitaining Goodwill are ___________ |
1. Cost - tangible assets - identifiable intangible assets
2. Stock price - FMV of the net asessets purchased EXPENSED |
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R&D costs are __________ as General rule
Materials, equipment and facilities are __________ if they have alternate _____________ |
EXPENSED
CAPITALIZED FUTURE USES |
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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. |
AT LEAST ANNUALLY
WHENEVER EVENTS OR CHANGES |
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The COMPLETED-CONTRACT METHOD recognizes income only __________
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ON COMPLITION OF THE CONTRACT
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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 |
1 and 2 - Current assets
3 - Current liability |
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ACCOUNTING FOR INSTALLMENT SALES
FORMULAS 1. Gross proffit = 2. Gross proffit % = 3. Earned Revenue = 4. Deffered Revenue = |
1. Sale - COGS
2. Gross proffit / Sale 3. Cash collections x Gross Profit % 4. Installement receivable x Gross Profit % |