1) When a seller is exposed to measurement uncertainty in a revenue transaction due to potential sales returns, the seller should recognize revenue

a.when the return period has expired.

b.immediately, but record a liability for the estimated future returns.

c.at the time of sale and account for returns as they occur.

d.at the time of cash collection

2) Under the completed-contract method, which of the following are reported each period during construction?

a.Revenues.

b.Gross profit.

c.Costs incurred.

d.All of the above are reported each period under the completed contract method.

3) When dealing with sales agreements, "acquired" means

a.measurement of the transaction.

b.goods to be delivered in the future.

c.consideration or rights to consideration.

d.dealing at arm's length.

4) The first step in the revenue recognition process under IFRS is

a.allocate the transaction price to the separate performance obligations.

b.determine the transaction price.

c.identify the contract with customers.

d.identify the separate performance obligations of the contract.