Time Value of Money Concepts
Revenue Recognition
Cash & Receivables
Misc.
100
This term is used to refer to the amount of money paid (or received) in excess of the amount borrowed (or lent).
What is interest?
100
These are promises to transfer goods or services to a customer.
What are performance obligations?
100
A ___ represents a company's claims to the future collection of cash, other assets, or services. An ____ results from the sale of goods or services on account. Finally, a ___ is similar to the above, except that it is accompanied by a formal, signed agreement.
What are receivables, accounts receivable, and note receivable, respectively?
100
This is referred to as the accounting equation.
What is Assets = Liabilities + Shareholders' Equity?
200
If interest is this type, any cost of borrowing that has yet to be paid by the borrower to the lender is added to the orginal amount of the loan.
What is compound interest?
200
These are the five steps in the revenue recognition process.
What are:
1. Identify the contract,
2. Indentify the performance obligations,
3. Determine the transaction price,
4. Allocate the transaction price, and
5. Recognize revenue when (or as) each performance oblagation is satisified.
200
A ____ discount allows a customer to pay an amount that is below list price, while a ____ discount provides a lower price if the customer pays quickly.
What are trade and sales (or cash) discounts, respectively?
200
This is the reason we have to learn the time value of money in accounting.
What is: Certain assets and liabilities are valued using time value of money concepts?
300
This represents the amount of money that some dollar amount will grow to in the future.
What is future value?
300
When a portion of transaction price depends on future outcomes, the price is said to have this feature.
What is variable consideration?
300
This is the name of the liability that captures estimated future returns.
What is the refund liability?
300
Mark Zuckerberg once purchased a cheesesteak from this location in Philadelphia.
What is Pat's Steaks?
400
These are defined as cash flows received or paid in the same amount each period.
What are annuitities?
400
These are the two methods used to estimate variable consideration.
What are the expected value and most likely amount methods?
400
This account is a contra-revenue account and is used to reduce revenue for estimated product returns and exchanges.
What is sales returns?
400
When you purchase a PS5 Bundle, which includes (a) the console, (b) an extra controller, (c) a video game, and (d) access Playstation's online service, the sale has ___ performance obligations.
What is four (4)?
500
In this type of annuity, cash flows occur at the beginning of each period.
What is an annuity due?
500
This method is used to calculate the amount of revenue earned on a long-term contract.
What is the percentage of completion method?
500
Using this "model" companies can estimate their bad debts. While it is called a model, it does not specify any particular method for estimating bad debts.
What is the Current Expected Credit Loss (CECL) model?
500
A customer paying for a product in advance ____ (choose: does or does not) represent a separate performance obligation when recognizing revenue.
What is does not?