15. Revenue should be recognized when A. cash is received B. the service is performed C. the customer places an order D. the customer charges an order 16. In preparing its financial statements for the current year, a company's closing inventory was understated by RM110,000. What will be the effect of this error if it remains uncorrected? A. The current year's profit will be overstated and next year's profit will understated B. C. The current year's profit will be understated but there will be no effect on next year's profit The current year's profit will be understated and next year's profit will be overstated D. The current year's profit will be overstated but there will be no effect on next year's profit 17. Trader Jimmy bought a new printing machine. The cost of the machine was RM70,000. The installation costs were RM5,000 and the employees received training on how to use the machine, at a cost of RM2,000. Before using the machine to print customer's orders, a test was undertaken and the paper and ink cost RM1,000. What should be the cost of the machine in the company's statement of financial position? A. RM70,000 B. RM65,000 C. RM76,000 D. RM78,000 18. A company bought a property four years ago on 1 January for RM180,000. Since then property prices have risen substantially and the property has been revalued at RM250,000. The property was estimated as having a useful life of 20 years when it was purchased. What is the balance on the revaluation surplus recorded in the statement of financial position? A. RM250,000 B. RM144,000 C. CO D RM106,000 RM70,000