Compute cost of goods sold from the following information. A material effect from changing accounting principles should be reported a. as an extraordinary item b. as a prior period adjustment c. by including the cumulative effect of the change as a separate line item in current income from continuing operations d. by including the cumulative effect of the change on prior periods' earnings as a component of net income in the period of the change 9. The general rule for the recognition of revenue is that revenue should be recognized a. by matching it with expenses. Occasionally revenue is recognized later than the usual point identified by the general revenue recognition rule. Sometimes extreme uncertainty of cash collections exists.
Revenue is earned over the entire earnings process.
Some markets are extremely stable, with fixed prices and any quantity of product can be sold at any time. To determine the number of periods used in computing a present value, you must know a. the interest rate and the future value. Listed below are five alternatives identified by the FASB for measuring balance sheet elements. Following the list is a series of balance sheet elements. Match each measurement alternative to its balance sheet element by placing the appropriate letter in the space provided.