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NEW QUESTION: 1
According to the FASB conceptual framework, which of the following statements conforms to the
realization concept?
A. Cash was collected on accounts receivable.
B. Product unit costs were assigned to cost of goods sold when the units were sold.
C. Equipment depreciation was assigned to a production department and then to product unit costs.
D. Depreciated equipment was sold in exchange for a note receivable.
Answer: D
Explanation:
Choice "b" is correct. Revenues and gains are realized when assets are exchanged for cash or claims to
cash. SFAC 5 para. 83.
Choice "a" is incorrect. Assigning depreciation in a production department is an example of allocating
overhead. There is no realization associated with the assignment.
Choice "c" is incorrect. The realization concept is integral to accounting for revenues and expenses and is
not connected to collection of receivables.
Choice "d" is incorrect. Assignment of overhead costs to products and thus to cost of goods sold is an
example of matching. There is no realization associated with this assignment.

NEW QUESTION: 2

A. Option C
B. Option A
C. Option B
D. Option D
Answer: D

NEW QUESTION: 3
All sites in the displayed network require Internet access. Route reflector 1(RR1) is used for Internet routes only and route reflector 2(RR2) is used for VPN routes only. Which of the following is FALSE?
A. RR2 establishes BGP sessions with PEL PE2 and PE3.
B. BGP sessions between RR2 and PE routers support only the VPN-IPv4 address family.
C. BGP sessions between RR1 and PE routers support only the IPv4 address family.
D. RR1 establishes BGP sessions only with PE1 and PE2.
Answer: D

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