Deck 19: Revenue

Question 1

Revenue is the only form of income.

Answer 1

False

Question 2

Which is the most important recognition criteria under IAS 18 for revenue from services rendered?

A)The revenue amount can be reliably measured
B)The stage of completion of the transaction at the balance sheet date can be reliably measured
C)It is probable that the economic benefits from the transaction will flow to the providing entity
D)The costs incurred for both the transaction and implementing the services can be reliably considered

Answer 2

B

Question 3

Which of the following two criteria are required for an entity to recognize interest as revenue?

A)The amount of revenue can be reliably measured; the costs of the asset can be reliably measured
B)The amount of revenue can be reliably measured; it is probable that the economic benefits of the transaction will flow to the entity
C)It is probable that the economic benefits of the transaction will flow to the entity; the costs of the asset can be measured.
D)The costs of the asset can be measured; the interest has accrued over one year

Answer 3

B

Question 4

According to the core principle of the new standard being prepared to replace IAS 18 and IAS 11,revenue should be recognized to depict:

A)The transfer of goods or services in an amount which reflects the fair value of the goods or services
B)The transfer of goods or services in an amount which reflects the entity's' outlay costs
C)The transfer of goods or services in an amount which reflects the consideration the entity expects to receive
D)The transfer of goods or services in an amount which reflects the entity's' possible losses if the buyer becomes unable to pay

Question 5

Management must choose the most reliable method of estimating the percentage- of- completion recognition of revenue

Question 6

Revenue includes inflow from contributions from equity participants.

Question 7

The revenue from a dividend can be recognized at any time.

Question 8

Under IAS 18,which of these barter transactions would not produce revenue?

A)a farmer exchanges a crop of carrots for seeds
B)bullion is exchanged for finished silverware
C)Two gas suppliers swap an identical amount of gas so that both can provide services in both locations
D)An accountant does the tax return for a restaurant in exchange for free meals

Question 9

Revenue on a lay - away sale is recognized when the significant risks and rewards are transferred to the buyer

Question 10

Which three types of transaction produce revenue under IAS 18?

A)sale of goods; the use of an asset yielding interest; an increased fair value of an asset
B)sale of goods; provision of services; the use of an asset yielding interest
C)provision of services; an increased fair value of an asset; a dividend from an associated company
D)a dividend from an associated company; sale of goods; the use of an asset yielding interest