1) In the case where the price of a good or service is dependent on some future event, what amount would the seller recognize as revenue?

a.The expected value.

b.The most likely amount.

c.Only the amount that is known at the time performance is complete.

d.Either the expected value or the most likely amount, whichever is most easily determinable.

2) Which of the following indicate that a seller's performance obligations have been satisfied?

a.The customer can direct the use of the good or service purchased without hindrance from the seller.

b.The customer can prevent others from receiving any benefit from the good or service purchased.

c.The customer has legal title to, and physical possession of, the asset purchased.

d.All of the above indicate satisfaction of a seller's performance obligations.

3) If there is measurement uncertainty in a revenue transaction,

a.revenue cannot be recognized.

b.revenue can only be recognized as the cash is collected.

c.revenue is recognized using the relative fair value method.

d.revenue is recognized, but an attempt is made to measure and accrue an amount relating to the uncertainty as a cost or reduced revenues.

4) In some distribution arrangements, the vendor retains legal title to the goods until ultimate sale to a third-party customer. This type of arrangement is called

a.completed contract.

b.free on board.

c.consignment.

d.installments.