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Question 7 (1 point) Listen Which statement is correct about multiple performance obligation arrangements? A) The residual method must normally be used. OB) There is no specific method thatunust be used. OC) The relative stand-alone selling price method must normally be used. D) The adjusted market assessment approach is an acceptable residual approach that may be used. Question 8 (1 point) ) Listen Ying Construction Company entered into a contract to build a new airport terminal for $2,500,000. Construction commenced on August 1, 2020, with a planned completion date of December 31, 2022. A summary of the costs, billings, and collections is provided below: 2020 2021 2022 500,000 700,000 1,100,000 Costs incurred during the year Estimated costs to complete at year end Billings during the year Cash collections during 1,500,000 1,200,000 440,000 1,000,000 1,060,000 400,000 900,000 1,200,000 the year Ying uses the percentage of completion method. What amount would appear as accounts receivable on Ying's December 31, 2021 balance sheet? O A) $1,400,000 OB) $140,000 OC) $1,000,000 D) $100,000 Question 10 (1 point) Listen Which of the following statements is correct about the revenue recognition criteria for a performance obligation satisfied over time? A) The selling entity creates an asset that the selling asset controls. O B) The selling entity creates an asset with an alternative use to the selling entity C) The selling entity does not have an enforceable right to payment for the performance completed to date. D) The outcome of the performance obligation must be reasonably estimable before the percentage of completion method can be used to record revenue

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