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ACG2104 Rasmussen Mod 4 Sales Based Royalty Payments Questions

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Accounting
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Rasmussen University
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• Question 1 2 out of 2 points Revenue for sales-based royalty payments should be recognized Selected Answer: when the amount of sales can be determined. Answers: when the amount of sales can be determined. on the date payment is received by the franchisor. on the date the performance obligation is satisfied. on the date the contract was signed. • Question 2 2 out of 2 points Sources of revenue for franchise companies are Selected Answer: sale of initial franchise and continuing fees. Answers: assistance for site selection and negotiating lease. bookkeeping and advisory services. sale of initial franchise and continuing fees. advertising and promotion. • Question 3 2 out of 2 points On February 1, 2014, Marsh Contractors agreed to construct a building at a contract price of $5,800,000. Marsh estimated total construction costs would be $4,000,000 and the project would be finished in 2016. Information relating to the costs and billings for this contract is as follows: 2014 Total costs incurred to date $1,500,000 Estimated costs to complete 2,500,000 Customer billings to date 2,200,000 Collections to date 2,000,000 2015 Total costs incurred to date $2,640,000 Estimated costs to complete 1,760,000 Customer billings to date 4,000,000 Collections to date 3,500,000 2016 Total costs incurred to date $4,600,000 Estimated costs to complete -0Customer billings to date 5,600,000 Collections to date 5,500,000 What is the Percentage of Completion Gross Profit for 201 ...
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