1. What two subtopics under ASC 605 “Revenue Recognition” pertain the most to a right of return:

a. 10 – Overall

b. 15 – products

c. 20 – services

d. 25 – multiple element arrangements

e. 28 – milestones method

f. 30 – rights to use

2. Nancy started a website to help people share calendars, photos, and videos. They are creating their 1^st financial statements and are wondering whether the $300,000 for website design (that includes how each tab and link are placed and the photos on the homepage) for their web platform should be classified as an asset or as an expense. Using FASB Codification only to research the answer, is this cost an asset or expense?

a. Asset

b. Expense

3. Nancy started a website to help people share calendars, photos, and videos. They are creating their 1^st financial statements and are wondering whether the $1.5 million for their web platform should be classified as an asset or as an expense. Using FASB Codification only to research the answer, is this cost an asset or expense?

a. Asset

b. Expense

4. Nancy started a website to help people share calendars, photos, and videos. They are creating their 1^st financial statements and are wondering whether the $60,000 they paid to content writers to write instructions to users and the welcome message should be classified as an asset or as an expense. Using FASB Codification only to research the answer, is this cost an asset or expense?

a. Asset

b. Expense

5. Dave has a public company that sells deer calls. On July 1, Dave received an order from Mike for the purchase of 200 custom engraved duck calls that will be used as a wedding favor and will be engraved with “Mike and Ann – 2015”. On July 29, Dave ships the completed order and the customer received the order on June 30^th. Dave’s return policy gives customers the right to return the product within 90 days if they are not satisfied and they will receive a full refund. Dave’s customers are very satisfied with his deer calls and they rarely return any product. Dave is trying to figure out if he can recognize the revenue before the 90-day return window. Researching 2015 revenue recognition rules, and looking at ASC 605-10-S99-1, which area of the four will be the hardest for Dave to pinpoint?

a. Persuasive evidence of an arrangement exists, FN3

b. Delivery has occurred or services have been rendered, FN4

c. The seller’s price to the buyer is fixed or determinable, FN5

d. Collectibility is reasonably assured, FN 6

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Status NEW Posted 11 Jul 2017 06:07 AM My Price 8.00

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