Question 1

Revenue recognition means that:

Accepted Answer

A)   revenue is not recorded until payment by the customer.
B)   the recording of expenses is delayed until the related revenue has been earned.
C)   revenue is recorded when earned.
D)   revenue is recorded when a deposit is received.

Question 2

The profit for a particular project of Blue Fin Ltd, using the percentage of completion method, was $470 000 for year 1 and $690 000 for year 2 (completion) . What difference would there be to profit for year 1 if the completion of production method were used?

Accepted Answer

A)   Profit would be $470 000 lower.
B)   Profit would be $470 000 higher.
C)   Profit would be $690 000 higher.
D)   There would be no difference.

Question 3

At what point would you expect revenue from sales of building materials to be recognised?

Accepted Answer

A)   During production
B)   On completion of production
C)   At point of sale or delivery
D)   When cash is received

Exam 13: Revenue and Expense Recognition: Additional Concepts

The profit for a particular project of Blue Fin Ltd, using the percentage of completion method, was $470 000 for year 1 and $690 000 for year 2 (completion) . What difference would there be to profit for year 1 if the completion of production method were used?

Correct Answer
verified

Revenue recognition means that:

Correct Answer
verified

At what point would you expect revenue from sales of building materials to be recognised?

Correct Answer
verified

Exam 13: Revenue and Expense Recognition: Additional Concepts

The profit for a particular project of Blue Fin Ltd, using the percentage of completion method, was $470 000 for year 1 and $690 000 for year 2 (completion) . What difference would there be to profit for year 1 if the completion of production method were used?

Correct AnswerverifiedShow Answer

Revenue recognition means that:

Correct AnswerverifiedShow Answer

At what point would you expect revenue from sales of building materials to be recognised?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified