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Revenue recognition

Authored by Zaini Embong

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University

Used 74+ times

Revenue recognition
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10 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The first step in the process for revenue recognition is to

determine the transaction price.

identify the contract with customers.

allocate transaction price to the separate performance obligations.

identify the separate performance obligations in the contract.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The last step in the process for revenue recognition is to

allocate transaction price to the separate performance obligations.

recognize revenue when each performance obligation is satisfied.

determine the transaction price.

identify the contract with customers.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A contract

must be in writing to be an enforceable contract.

is an agreement that creates enforceable rights and obligations.

is enforceable if each party can unilaterally terminate the contract.

does not need to have commercial substance.

4.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

On January 15, 2018, Bella Vista Company enters into a contract to build custom equipment for ABC Carpet Company. The contract specified a delivery date of March 1. The equipment was not delivered until March 31. The contract required full payment of €75,000 30 days after delivery. The revenue for this contract should be

recorded on January 15, 2018.

recorded on March 1, 2018.

recorded on March 31, 2018.

recorded on April 30, 2018.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A performance obligation exists when

a company receives the right to receive consideration.

a contract is approved and signed.

a company provides a distinct product or service.

a company provides interdependent product or service.

6.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Noncash consideration should be

recognized on the basis of fair value of what is given up.

recognized on the basis of original cost paid by customer.

recognized on the basis of fair value of what is received.

recognized on the basis of fair value of equivalent goods or services.

7.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

A transaction price for multiple performance obligations should be allocated

based on selling price from the company’s competitors.

based on what the company could sell the goods for on a standalone basis.

based on forecasted cost of satisfying performance obligation.

based on total transaction price less residual value.

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