1.) If $200,000 of bonds are issued during the year but $120,000 of old bonds are retired during the
year, the cash flow statement in good form will show a(n)
a. net increase in cash of $80,000.
b. net decrease in cash of $80,000.
c. increase in cash of $200,000 and a decrease in cash of $120,000.
d.net gain on retirement of bonds of $80,000.
2.) Cash receipts from customers are greater than sales revenue when there is
a. an increase in accounts receivable.
b. a decrease in accounts receivable.
c. an increase in cost of goods sold.
d. a decrease in cost of goods sold.
3.) Which of the following is not a component of five-step framework to the contract-based approach of revenue recognition?
a. Determining the transaction price in the overall contract.
b. Allocating the transaction price evenly through the contract.
c. Identifying the contract with a customer.
d. Identifying the performance obligations in the contract.
