Basic Theory & Financial Reporting

Question 0

Under installment method sales is recognized

Answer 0

In proportion to cash collection

Question 1

What method is used when collectibles are undeterminable?

Answer 1

Installment sales method & cost recovery method

Question 2

Sales income is recognized under installment method when

Answer 2

Cash is collected

Question 3

Income is recovered when after all cost of sales is recovered

Answer 3

Cost Recovery method

Question 4

In gift certificate, revenue is redeemed or recognized when

Answer 4

The certificate is redeemed or expired

Question 5

Revenue is recognized in the Real Estate transaction only when

Answer 5

The Risk and Rewards are completely transferred from the Seller to the Buyer

Question 6

In accounting putting words and numbers is

Answer 6

Recognition

Question 7

When it’s primary or central, it’s Revenue or Expense, but if it’s peripheral or accidental

Answer 7

It’s Gain or Loss

Question 8

The objectives or the general purpose of financial reporting is to provide

Answer 8

Financial Information

Question 9

The two fundamental qualitative characteristics of accounting information are

Answer 9

Relevance and Faithful Representation

Question 10

Under installment method, revenue is recognized as

Answer 10

Cash is collected

Question 11

Installment sales method can only be used where

Answer 11

Collection of the sale price is not reasonably assured

Question 12

Under installment sales, Gross Profit is deferred in future periods and revenue is recognized

Answer 12

Proportionally to the collections of receivables

Question 13

Under multiple deliverable revenue agreements, the delivered item must have

Answer 13

Value on stand alone basis

Question 14

Research and development is accounted for on what basis?

Answer 14

Milestone Basis

Question 15

In IASB framework, the definition on income includes

Answer 15

Both Revenue and Gains

Question 16

Installment sales and Cost Recovery Methods is used when

Answer 16

When collectibles are undetermined and cannot be estimated

Question 17

What method is used when collectibles are undeterminable?

Answer 17

Installment sales method & cost recovery method

Question 18

Under installment method sales is recognized

Answer 18

In proportion to cash collection

Question 19

Sales income is recognized under installment method when

Answer 19

Cash is collected

Question 20

Income is recovered when after all cost of sales is recovered

Answer 20

Cost Recovery method

Question 21

In gift certificate, revenue is redeemed or recognized when

Answer 21

The certificate is redeemed or expired

Question 22

Revenue is recognized in the Real Estate transaction only when

Answer 22

The Risk and Rewards are completely transferred from the Seller to the Buyer

Question 23

In accounting putting words and numbers is

Answer 23

Recognition

Question 24

When it's primary or central, it's Revenue or Expense, but if it's peripheral or accidental

Answer 24

It's Gain or Loss

Question 25

The objectives or the general purpose of financial reporting is to provide

Answer 25

Financial Information

Question 26

The two fundamental qualitative characteristics of accounting information are

Answer 26

Relevance and Faithful Representation

Question 27

Under installment method, revenue is recognized as

Answer 27

Cash is collected

Question 28

Installment sales method can only be used where

Answer 28

Collection of the sale price is not reasonably assured

Question 29

Under installment sales, Gross Profit is deferred in future periods and revenue is recognized

Answer 29

Proportionally to the collections of receivables

Question 30

Under multiple deliverable revenue agreements, the delivered item must have

Answer 30

Value on stand alone basis

Question 31

Research and development is accounted for on what basis?

Answer 31

Milestone Basis

Question 32

In IASB framework, the definition on income includes

Answer 32

Both Revenue and Gains

Question 33

Installment sales and Cost Recovery Methods is used when

Answer 33

When collectibles are undetermined and cannot be estimated