16. Most entities satisfy the accounting criteria for f recognizing revenue when

Question

16. Most entities satisfy the accounting criteria for f recognizing revenue when A an order is received from a customer B. cash is received from a customer. C. an uneamed revenue account is credited D. a product is delivered or a service is provided. Inte 17. An item that cost $90 is sold for $120. The gross profit ratio for this item is: B. as C. whe , whe A. 20%. B. 25%. C. 33.3%. D. 6096. maga. ses t 18. The major difference between the indirect and the direct method of a statement of cash fiows appears in which the following activities section(s)? sh is gazir azin A. The investing activities and financing activities sections. B. The investing activities section only C. The operating activities and financing activities sections. D. The operating activities section only. sting 19. In the statement of cash flows, depreciation and amortization expense is added back to net income ase se i e i e ir because: A. these expenses do not affect cash, but were subtracted in the determination of net income. B. these expenses affect investing activities, not operating activities. C. the cash disbursements for these accrued expenses will be made in a future period. D. these expenses are recognized for accounting purposes, but they do not represent economic costs.

Explanation / Answer

16. Answer is D.

17. Amswer is B

  Sale value $120

Cost $90

Gross profit $30

Gross profit ratio 25% ($30 / $120)

18. Answer is D.

19. Answer is A

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