The Journal Entries to Recognize the Revenue from a Consignment

question 27

Multiple Choice

The journal entries to recognize the revenue from a consignment sale would likely be identical under the earnings and the contract-based approaches assuming

• A) the contract is entered into at the same time as when control over the goods is passed to the customer.
• B) the underlying goods or services are valued under the residual value method.
• C) the completed contract method is used.
• D) the percentage-of-completion method is used.

---

Definitions:

MCR Instruction

Master Control Reset Instruction, used in programming PLCs to control the execution of blocks of logic.

De-energize MCR Coil

The process of removing electrical power from a Master Control Relay (MCR) coil, which stops the current path in the control circuit.

Disconnect Switch

A disconnect switch, also known as an isolator switch, is a device used to ensure that an electrical circuit is completely de-energized for service or maintenance.

JSR Instruction

An assembly language instruction meaning "Jump to SubRoutine," directing the program flow to a specified subroutine.