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NEW QUESTION: 1
A department store sells gift certificates that may be redeemed for merchandise. Each certificate expires 3 years after issuance. The revenue from the gift certificates should be recognized:
A. In the period the certificates are sold.
B. In the period the certificates expire.
C. In the period the certificates are redeemed or in the period they expire if they are allowed to lapse.
D. Evenly over 3 years from the date of issuance.
Answer: C
Explanation:
Income, which includes revenue and gains, should not be recognized until an increase future economic benefits related to an increase in an asset or a decrease in a liability is sufficiently certain and can be measured reliably_ These criteria are met when the certificates are redeemed or expire because the liability for redemptions will then decrease and economic benefits will be reliably measurable. On January 1, Year 1, a construction company signed a contract with a property management firm involving the construction of a large urban office tower. The total price of constructing the tower was agreed to be US $10 million with US $2 million being paid on the date of the agreement. Construction began immediately upon the signing of the contract and was expected to take 3 years to complete. The original estimate of total construction costs was US $8 million. During the year ended December 31, Year 1, US $4 million of construction costs were incurred, and engineering estimates indicated that the office tower was 30% complete at year-end. At year-end, the revised estimate of total construction costs was US $8.5 million and the properly management firm had been billed a further US $4 million, although only US $1 million of that amount had been collected by year-end.

NEW QUESTION: 2
Select two configuration options that enable you to use the same data page for populating a list and looking up information based on the selected item in the li (Choose Two)
A. Add parameters to the data page to store the value of the selected list item.
B. Use page list keys on the data page to identify the selected list item.
C. Set the data page Edit mode to editable so the list of values can be updated.
D. Use the Access pages with user defined keys option on the data page.
Answer: B,C

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