Which accounting standard governs revenue recognition?
IAS 16
IFRS 9
ASC 606
IAS 38
1 answered
#2
When can revenue be recognized under the accrual basis of accounting?
When cash is received
When goods or services are delivered
At the end of the accounting period
When the customer places an order
1 answered
#3
Which of the following is NOT a core principle of revenue recognition according to ASC 606?
Identify the contract with the customer
Determine the transaction price
Recognize revenue when cash is received
Allocate the transaction price to the performance obligations
1 answered
#4
Under ASC 606, how should variable consideration be estimated?
Using the most likely amount
Using the minimum amount
Using the maximum amount
Using the expected value method
1 answered
#5
Which revenue recognition method recognizes revenue as performance obligations are satisfied?
Cash basis
Accrual basis
Percentage of completion method
Completed contract method
1 answered
#6
What is the primary criterion to recognize revenue under IFRS 15?
When the goods are delivered
When the contract is signed
When the performance obligations are satisfied
When the payment is received
1 answered
#7
Which of the following is an example of a performance obligation under ASC 606?
Issuing a gift card
Providing a warranty
Offering a loyalty program
Delivering a product manual
1 answered
#8
Which of the following is NOT a step in the revenue recognition process under ASC 606?
Identify the performance obligations
Determine the transaction price
Recognize revenue when cash is received
Allocate the transaction price to the performance obligations
1 answered
#9
Under IFRS 15, what is the term used for the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer?
Transaction price
Contract asset
Contract liability
Performance obligation
1 answered
#10
Which of the following statements is true regarding revenue recognition for long-term construction contracts?
Revenue should be recognized at the start of the contract
Revenue should be recognized based on the percentage of completion
Revenue should be recognized at the end of the contract
Revenue should be recognized when the contract is signed