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14 Cards in this Set
- Front
- Back
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d. All of these are beyond the scope of PFRS 15 |
Which is within the scope of PFRS 15?
a. Lease b. Insurance contract c. Financial instrument d. All of these are beyond the scope of PFRS 15 |
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d. Revenue is recognized in a manner that depicts the transfer of good or service to a customer and the revenue reflects the consideration to which an entity expects to be entitled. |
What is the core principle of PFRS 15? a. Revenue is recognized when earned. b. Revenue is recognized at a point in time or over time. c. Revenue is recognized when collected. d. Revenue is recognized in a manner that depicts the transfer of good or service to a customer and the revenue reflects the consideration to which an entity expects to be entitled. |
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b. Five-step model |
The revenue recognition in accordance with the core principle is applied following a. Four-step model b. Five-step model c. Three-step model d. Any model |
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d. All of these statements are true about a contract. |
Which statement is true about a contract? a. A contract is an agreement between two or more parties that creates enforceable rights and obligations. b. Enforceability of the rights and obligations in a contract is a matter of law. c. A contract can be in writing, oral or implied by customary business practice. d. All of these statements are true about a contract. |
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d. It is not probable that the consideration will-be collected. |
A contract with a customer must meet all of the following criteria, except a. The contract is approved by all parties. b. The rights and obligations of the parties and payment terms are identified. c. The contract has commercial substance. d. It is not probable that the consideration will-be collected. |
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a. A promise to deliver a distinct good in a contract with a customer. |
A performance obligation is a. A promise to deliver a distinct good in a contract with a customer. b. A promise to deliver an indistinct good in a contract with a customer. c. The consideration to which an entity is expected to be entitled. d. An executed contract. |
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d. All of these describe a transaction price. |
The transaction price a. Is the amount of consideration in a contract. b. May include variable or a noncash consideration. c. May be affected by the time value of money if the contract contains a significant financing arrangement. d. All of these describe a transaction price. |
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a. Stand-alone selling price |
The transaction price is allocated to the performance obligations based on relative a. Stand-alone selling price b. Fair value c. Adjusted market price d. Residual value |
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b. When or as the entity satisfies the performance obligation by transferring control of a good or service to a customer. |
When shall an entity recognize revenue from contract with a customer? a. When it is probable that future economic benefits will flow to the entity. b. When or as the entity satisfies the performance obligation by transferring control of a good or service to a customer. c. When the entity collected the consideration from the customer. d. When the entity and the customer signed the contract. |
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c. The entity has not transferred the significant risk and reward of ownership |
Revenue shall be recognized at a point in time under all of the following, except a. The customer has legal title to the asset b. The customer has phsysical possession of the asset c. The entity has not transferred the significant risk and reward of ownership d. The entity has the right to receive payment for the asset |
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b. Bill and hold sales |
Sales in which the buyer is not yet ready to take delivery but does take title are known as a. Barter sales b. Bill and hold sales c. Layaway sales d. Sales with buyback |
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c. When the machine is loaded at the port. |
An entity is a large manufacturer of machines. A major customer has placed an order for a special machine for which it has given a deposit to the entity. The parties have agreed on a price for the machine. As per the terms of the sale agreement, it is free on board contract and the title passes to the buyer when goods are loaded into the ship at the port. When should the revenue be recognized by the entity? a. When the customer orders the machine. b. When the deposit is received. c. When the machine is loaded at the port. d. When the machine has been received by the customer |
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b. When goods are sold by the retailer. |
A manufacturer sells merchandise to a retailer which in turn sells the goods to the public. The retailer purchases from the manufacturer under a consignment contract. When should revenue from the sale of merchandise to the retailer be recognized by the manufacturer? a. When goods are delivered to the retailer. b. When goods are sold by the retailer. c. The recognition depends on the terms of delivery. d. The recognition depends on the terms of payment. |
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c. Only if goods are not returned by the customer after the period of one month |
An entity has come out with an offer of right of return within one month after the sale if the customer is not satisfied with the product. When should the entity recognize the revenue? a. When goods are sold to the customer b. After one month of sale c. Only if goods are not returned by the customer after the period of one month d. At the time of sale based on the discretion of the seller |
