ANSWER:-
Correct Answer is A i.e. The receipt of consideration to which the entity is entitled under the contract must be probable
Revenue from sale is recognized when the amount of cosideration is measurable and probable to be received. It is basically when all the risks and rewards are transferred to the buyer.
Thanks & Regards
Hoping for a Positive response
Which of the following is a criterion that must be met to recognize revenue from the...
Which of the following are steps to recognize revenue under ASC 606 - the new Joint FASB/IASB Standard? Identify the contract(s) with a customer. Identify the performance obligations in the contract. Determine the transaction price. Allocate the transaction price to the performance obligations in the contract. Recognize revenue when (or as) the entity satisfies a performance obligation. 1, 2 and 3. 1, 2, 3 and 4. 1, 2, 3 4 and 5. 1, 3 and 5.
Which of the following is least likely a criterion to recognize revenue under US GAAP? A. Price is determinable. B. There is evidence of an arrangement between the buyer and the seller. C. Cash is received.
1.Which of the following statements is true regarding the new ASC Topic 606 for revenue recognition? Multiple Choice The focus is on when the firm has earned the consideration to which it is entitled. Early adoption is not allowed. The new rules are more rules-based than principle-oriented. Under IFRS, both public and non-public firms must adopt by 2018 2.Assuming the requirements for recognizing revenue over time are met, the measure of completion is computed by dividing Multiple Choice profits earned...
LOS Concept Check: Key Indicators for the Transfer of Control Which of the following is not a key indicator used in deciding whether control has passed from the seller to the buyer? a. Seller can identify the contract with a buyer b. Buyer has an obligation to pay the seller C. Buyer has legal title to the asset d. Buyer has physical possession of the asset LO5-2 Concept Check: Key Indicators for the Transfer of Control (2) Which of the...
On December 1, 2019, Coburn Consulting Ltd. signed a contract with Burke Inc., which obligated Coburn to provide Burke with 16 hours of consulting services per month from January through December of 2020. The contract requires Burke to pay a total of $67,200 for these services, with payments of $5,600 due at the end of each month. Coburn has provided similar services to Burke in the past and has always collected its fees on a timely basis. Requirement Using IFRS...
On December 1, 2019, Coburn Consulting Ltd. signed a contract with Burke Inc., which obligated Coburn to provide Burke with 16 hours of consulting services per month from January through December of 2020. The contract requires Burke to pay a total of $67,200 for these services, with payments of $5,600 due at the end of each month. Coburn has provided similar services to Burke in the past and has always collected its fees on a timely basis. Requirement Using IFRS...
The term, "realization," in revenue recognition refers to which of the following? The entity has completed, or substantially completed, the activities it must perform to be entitled to the revenue benefits. The product or service has been exchanged for cash, claims to cash, or an asset that is readily convertible to a known amount of cash or claims to cash. The entity has received an irrevocable order for goods or services. Cash has been received with an irrevocable order for...
1. Which of the following requires a written contract to be enforceable? a)Jonah rents a luxury yacht for a month at a cost of $10,000. b)Philmont agrees to paint your house for $500 c) Stanton's pit bull has just had a litter, and he agrees to sell you a puppy for $500 when the pups are weaned from their mother d) Lindsay borrows $5,000 from Roberto to buy a car 2. Sharon has contracted with Craig to buy Craig's car....
Question 1 For a firm to recognize revenue, it must 1 point Have delivered something to the customer have received at least some cash from the customer be earned and realized/realizable either have received cash or have a signed contract 2. Question 2 Your friend Yong has a company making and selling watches with bands that are customized to match university colors. The business started locally, but now has expanded around the world. His strategy is to sell in bulk...
1. Which of the following statements is true? a. The serving of written questions, to be answered in writing by the opposing party, is known as interrogatories. b. A long-arm statute becomes applicable only in cases in which the court has been found not to have a venue. c. An attorney "cross-examines" a witness who has been called to establish the facts about his or her side of the case. d. If a demurrer entered by the defendant is sustained...