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NEW QUESTION: 1
Topaz Metals Inc. produces precious metals from its mining operations. The selling price for its product is reasonably assured, the units are interchangeable, and the costs of selling and distributing the product are insignificant. In order for Topaz to recognize revenue as early in the revenue cycle as is permitted under generally accepted accounting principles, the revenue recognition method that Topaz should use is the
________.
A. cost recovery method
B. cash method
C. percentage-of-completion method
D. production method
E. completed-contract method
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Revenue is recognized when the conditions of "realized" or "realizable" and earned are met. If products are readily realizable because they are salable at reliably determinable prices without significant effort, revenues may be recognized at completion of production.

NEW QUESTION: 2
Which of the following projects is likely to have multiple Internal Rates of Return? Project A Initial investment outlay: ($1,000,000) t1: $400,000
t2: $100
t3: $1,000,000
t4: $1,000,000
t5: $100
t6: $0.00
Project B
Initial investment outlay: ($1,000,000)
t1: $40,000
t2: $90,000
t3: $590,000
t4: ($105,000)
t5: ($10,000)
t6: $900,000
Project C
Initial investment outlay: ($500,000)
t1: $100,000
t2: $100,000
t3: $100,000
t4: $100,000
t5: $0.00
t6: $500,000
Project D
Initial investment outlay: ($500,000)
t1: $105,000
t2: ($40,000)
t3: $45,000)
t4: $400,000
t5: $400,000
t6: $65,000
A. None of these answers
B. Project B
C. Project A
D. Project C
E. Both Project B and D likely to have multiple IRRs
F. Project D
Answer: E
Explanation:
Explanation/Reference:
Explanation:
In evaluating projects with "non-normal cash flows" the Internal Rate of Return method will often produce multiple IRRs which leads to an incorrect accept/reject decision. Non-normal cash flows are defined as cash flows in which the sign changes more than once. Projects B and D involve cash outflows superimposed within the cash inflows, resulting in a sign change from positive to negative and negative to positive. In examining projects such as this, it is advisable to use either the NPV or MIRR methods. From observation alone, we can determine that project B and D are non-normal projects, and are thus likely to result in multiple IRR calculations. While projects A and C do involve periods of zero cash flow, this will not interfere with the IRR calculation to the extent of producing multiple IRRs.

NEW QUESTION: 3
Users can be deleted from salesforce.com
A. True
B. False
Answer: B

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