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Which of the following will most likely help identify an increasing proportion of uncollectible sales? A

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1. Which of the following will most likely help identify an increasing proportion of uncollectible sales?
   A.) accounts receivable turnover
   B.) the ratio of bad debt expense to sales
   C.) the ratio of sales returns to sales
   D.) the ratio of cost of sales to sales
2. Assume that Madison Corp. has agreed to construct a new basketball arena for Knight Town for $70 million dollars. Construction of the new arena begins in July, 2012 and is expected to be completed in March 2014. At the signing of the contract Madison Corp. estimates that the new arena will cost $60 million dollars to build. Cost information is summarized below:
   
   Cost incurred to date & estimated cost remaining
   2012: $ 18 million $42 million
   2013: $ 48 million $12 million
   2014: $ 60 million $0
   
   Given the above cost and building schedule determine the cumulative degree of completion and how much revenue and gross margin Madison Corp. should recognize in years 2012?
3. All of the following are events that can change the projected benefit obligation (PBO) during a period except:
   A.) The payment of retirement benefits.
   B.) Amendments to the pension plan agreement
   C.) The interest accumulated on the liability.
   D.) All of these can change the PBO
4. A minimum liability for pension expense is reported when
   A.) the projected benefit obligation exceeds the fair value of pension plan assets.
   B.) the pension expense reported for the period is greater than the funding amount for the same period.
   C.) the accumulated benefit obligation exceeds the fair value of pension plan assets.
   D.) vested benefits exceed the fair value of pension plan assets
5. When input prices are increasing, companies that use the LIFO method of accounting for inventory will report what?
6. Upton Company has consistently used the percentage-of-completion method of recognizing income. In 2010, Upton started on an $18,000,000 construction contract that was completed in 2012. The following information was taken from Upton's 2010 accounting records: Progress billing = $ 6,600,000 Costs incurred = $ 5,400,000 Collections = $ 4,200,000 Estimated costs to complete = $10,800,000 What amount of revenue should Upton recognize on the contract in 2010?
7. The projected benefit obligation measures what?
8. Falcon Networks is a leading semiconductor company with operations in 17 different countries. Information about the company's taxes appears below: Falcon Networks Components of 2012 Income Tax Expense (in millions) Current - Federal = $ 55.65 Current Foreign = 83.85 Current State and Local = 14.69 Total Current = $154.19 Deferred - Federal = $ 30.28 Deferred Foreign = 23.89 Total Deferred = $ 54.17 Total Income Tax Expense = $208.36 Note: Falcon Networks has no current liability at year-end with respect to total current taxes. Components of Income before Taxes in 2012 United States = $256.35 Foreign = 236.85 Total = $493.20 Using the information provided by Falcon Networks what is the federal effective tax rate for 2012?
9. Company A is considering a takeover of Company B which has used LIFO inventory accounting for the last 50 years. In evaluating the inventory of Company B for fair market valuation purposes, it would normally be appropriate to use:
10. The installment method of revenue recognition can be used when cash collectibility is uncertain. The installment method requires what?
11. Parnell Industries sold a copy machine to Ranger Inc. on January 1, 2012. The sale price of the machine was $4,000,000 and the machine cost $3,200,000 for Parnell to manufacture. Ranger will make four payments at the end of each year, beginning with 2012, of $1,261,883 each. The four payments of $1,261,883 when discounted at 10% have a present value of $4,000,000. A 2012 amortization table appears below: Note Receivable balance Jan. 1, 2012 = $4,000,000 Interest revenue @ 10% = 400,000 Cash payment received = 1,261,833 Repayment of principal = 861,886 Note receivable balance Dec. 31, 2012 = 3,138,117 After 2012, three additional payments of 1,261,833 will be made. If Parnell Industries is uncertain that it will collect all four payments from Ranger Inc. and uses the cost recovery method of accounting for revenue recognition what amount of gross profit should Parnell recognize in 2012 from the sale?