1. Revenue is considered to be earned when?:

1. a company exchanges goods or services for cash or claims to cash.
2. when it is realized or realizable.
3. a company has substantially completed what it must do in order to be entitled to the benefits represented by the revenues.
4. assets received by the company in exchange for goods or services are readily convertible to known amounts of cash or claims to cash.

2. At which point in the revenue recognition process can revenue actually be recognized?

1. When the contract is signed.
2. When the price has been agreed to.
3. When all performance obligations have been satisfied.
4. At the earliest of the above three times

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. Either the expected value or the most likely amount, whichever is most easily determinable. D. Only the amount that is known at the time performance is complete.

Which of the following indicate that a sellers 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 sellers performance obligations.