1.

Pertanyaan #1
Use the following select information regarding Company X to answer questions 1-4.

Balance Sheet
2015 2
Cash $50,000 $
Inventory $20,000 $
PP&E $150,000 $
Total Assets $300,000 $
Total Liabilities $170,000 $
Total Equity $130,000 $

Income Statement
Net Sales $400,000
Gross Profit $250,000
Operating Expenses $100,000
Tax Rate 40%
What is Company X’s asset turnover ratio?

0 / 1 poin

0.77 xxxxxxxx

xxxxx
1.14

1.23

1.33

Salah
More information about the concept tested in this question can be found in the Lesson 7-4 video.

2.
Pertanyaan #2
What is Company X’s inventory turnover ratio?
1 / 1 poin

5.00

6.00

10.00

16.00

Benar

3.
Pertanyaan #3
What is Company X’s Return On Assets (ROA)?

0 / 1 poin

9% xxxxx

17% xxxxxx

28%

32%

Salah
More information about the concept tested in this question can be found in the Lesson 7-4 video.

4.
Pertanyaan #4
What is Company X’s Return On Equity (ROE)?

0 / 1 poin

31% xxxxx

45%
53% xxxxx

60%

Salah
More information about the concept tested in this question can be found in the Lesson 7-4 video.

5.
Pertanyaan #5
Use the following information regarding Company X to answer questions 5-8.

Company X started progress on a long-term construction project at the beginning of 2017 for a
contract price of $10 million. Company X estimates that the project will take four years to complete,
and it will be working on the project over this period of time. Billings are made each year as listed in
the table below.

All numbers are in millions of dollars.

2017 2018
Construction costs incurred during the year $2.00 $2.25
Cumulative actual construction costs $2.00 $4.25
Estimated costs to complete at year end $6.50 $4.50
Total estimated and actual costs $8.50 $8.75
Billings made during the year $2.50 $2.50
Cash collections during the year $2.00 $2.00
What journal entry would Company X make to record the collection of cash in 2017?

1 / 1 poin

Debit Credit
Cash Construction in progress

Debit Credit A
Cash Accounts Receivable $

Debit Credit
Cash Billings on construction contract
 Debit Credit
Accounts Receivable Billings on construction contract
Benar

6.
Pertanyaan #6
Using the percentage of completion method, what should Company X recognize as revenue for 2018
(year 2)?

1 / 1 poin

$2,000,000

$2,500,000

$2,504,201

$4,857,142

Benar

7.
Pertanyaan #7
What should Company X recognize as revenue for 2019 (year 3)?

1 / 1 poin

$2,000,000

$2,365,080

$2,500,000

$7,222,222

Benar

8.
Pertanyaan #8
What should Company X recognize as gross profit for 2019 (year 3)?

0 / 1 poin

$115,080

$250,000 xxxxxx

$722,222

$750,000 xxxx

Salah
More information about the concept tested in this question can be found in the Lesson 7-1 video.

9.
Pertanyaan #9
Under which methods of revenue recognition should periodic losses be recognized?

1 / 1 poin

Percentage of completion method

Contract completion method

Both methods

Neither method

Benar

10.
Pertanyaan #10
Which of the following is false regarding revenue recognition under the percentage of completion
method?

1 / 1 poin

This method uses estimates in order to calculate revenue recognition for the period.
AND

This is a straight-line method that only uses the first year of the contract to allocate revenue over the
life of the contract.

This is an input-based method of revenue recognition.

This method uses estimates in order to calculate revenue recognition for the period.

This is a straight-line method that only uses the first year of the contract to allocate revenue over the
life of the contract.

Benar