Unit 7 Post Test Attempt review PDF

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2/27/2020

Unit 7 Post Test: Attempt review

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> AF210_201901 > Unit 7 Post Test

Started on State Completed on Time taken Mark Question

Tuesday, 26 March 2019, 6:14 PM Finished Tuesday, 26 March 2019, 6:25 PM 11 mins 11 secs 10.00 out of 10.00 (100%)

1

Correct Mark 1.00 out

IASB (2011) specifies the accounting treatment in the case that the outcome o cannot be reliably assessed. The treatment specified is:

of 1.00

Select one: a. (a) contract costs must be deferred and matched against revenues in the are recognised where it is not probable that the costs will be recovered in th where it is probable that the costs will be recovered in the current period, re only to the extent of the costs incurred. b. (a) construction costs must be accrued and reported as a deferred asset considered probable that the costs will be recovered; and (b) revenue may extent of the costs incurred c. (a) contract costs must be recognised as an expense in the financial yea and (b) where it is probable that the costs will be recovered, revenue must extent of the costs incurred. d. (a) construction costs must be recognised as a contra asset in the financ incurred and set-off against the receivable recorded on the contract; and (b less than the accrued costs, the difference must be written off as an expens

Your answer is correct. The correct answer is: (a) contract costs must be recognised as an expense in th are incurred; and (b) where it is probable that the costs will be recovered, reven the extent of the costs incurred.

Question

2

Correct Mark 1.00 out

Which of the following statements is not in accordance with IASB (2011) Reven Customers with respect to revenue recognition when right of return exists?

of 1.00

Select one: a. When goods are sold or services are rendered recognition of a refund lia b. Revenue recognition of the consideration for the transferred products to to be entitled.

2/27/2020

Unit 7 Post Test: Attempt review

Question

3

Correct

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Under the AASB (IASB) conceptual framework income is now subdivided into > AF210_201901 > Unit 7 Post Test

of 1.00

Select one: a. gains, which are regarded as constituting a separate element in the fram may only arise in the course of the ordinary activities of the entity. b. revenues, which arise in the course of the ordinary activities of the entity not arise in the course of the ordinary activities of the entity. c. increases in equity referred to as gains; reductions in liabilities which are d. revenues, which only include sales, fees, interest, dividends, royalties a different in nature to revenue.

Your answer is correct. The correct answer is: revenues, which arise in the course of the ordinary activit may or may not arise in the course of the ordinary activities of the entity.

Question

4

Correct Mark 1.00 out of 1.00

Kringle Company has agreed to provide services to North to South Ltd in excha and a cash payment. The equipment is currently recorded in North to South's b independent assessors have set the fair value at $65 000. The cash payment o months after completion of the services. Kringle should record revenue as Select one: a. $93 000 b. $85 000 c. $65 000 plus the present value of the $20 000 cash component  d. $65 000 in the current period, $20 000 next period

Your answer is correct. The correct answer is: $65 000 plus the present value of the $20 000 cash comp

Question

5

Correct

Revenue recognition under IASB (2011) requires that:

Mark 1.00 out of 1.00

Select one: a. the entity retains neither continuing managerial involvement to the degr ownership nor effective control over the goods. b. the costs incurred or to be incurred can be measured reliably c the entity has transferred to the buyer the significant risks and rewards o

2/27/2020

Unit 7 Post Test: Attempt review

Question

6

Correct

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Revenues may be generated by > AF210_201901 > Unit 7 Post Test

of 1.00

Select one: a. all of the given answers  b. holding and disposing of inventory in the normal course of business. c. having a liability forgiven d. receiving a donation.

Your answer is correct. The correct answer is: all of the given answers

Question

7

Correct Mark 1.00 out of 1.00

Minty-Fresh Ltd sells a designer toy in advance of its release in July to a custom of the following would be included in the transaction to record the sale of the d Select one: a. DR Gift certificate expense 200

 b. CR Unearned revenue 350 c. CR Gift certificate 350 d. CR Sales revenue 350

Your answer is correct. The correct answer is: CR Unearned revenue 350

Question

8

Correct Mark 1.00 out of 1.00

Daniel Ltd sells one of its properties to a financing company with an attached c Daniel Ltd to reacquire the property at a future date for $400 000. The current the sale is $300 000, but the financing company pays $350 000 for it. It is expe of the property will exceed $400 000 before the option expires. What is the app sale? Select one: a. Record the inflow of cash and a liability  b. Record the revenue and make appropriate note disclosures about the ca risks. c. No entry would be required as the call option is off balance sheet and the been sold.

2/27/2020

Unit 7 Post Test: Attempt review

Question

9

Correct

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When goods are sold 'free on board' (f.o.b.) shipping point, the revenue should > AF210_201901 > Unit 7 Post Test

of 1.00

Select one: a. the goods are completed and ready to be transported.

b. the goods are received by the purchaser c. none of the given answers is correct; there is no revenue involved for go board'.

 d. the goods are received by the common carrier

Your answer is correct. The correct answer is: the goods are received by the common carrier

Question

10

Correct

An entity shall recognise revenue from a contract when

Mark 1.00 out of 1.00

Select one: a. the customer obtains control of the goods or service b. the goods or service have been transferred to the customer.

c. the entity has satisfied the performance obligation d. all of the given answers are necessary for recognition of revenue from a

Your answer is correct. The correct answer is: all of the given answers are necessary for recognition of r

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