Question 1- A company sells clothes wholesale from its factories overseas to department stores in Canada. The shipping terms are freight on board (FOB) shipping point. Under ASPE, at what point would these revenues generally be recognized in the financial statements?

Question 1 options:

A	When the return period has expired
B	When future benefits of an asset expire
C	When the clothes are shipped to the customer
D	When the clothes are received by the customer

Question 2

Which of the following statements regarding revenue recognition under ASPE is true?

Question 2 options:

A	When customers have a right to return a product and the returns can be estimated, revenue should be recognized net of returns.
B	Revenue is presented on a gross basis, before considering discounts, returns and allowances, and sales and excise taxes.
C	When the amount of consideration cannot be determined, the entity should use its best estimate to record revenue.
D	Refundable fees for service should be recorded as revenue, and the revenue reversed when the fee is refunded.

Question 3

Which of the following would be considered revenue under ASPE?

Question 3 options:

A	Good Corp. is a retailer of electronic goods and is in the process of renovating its stores. The company sells its shelving that is no longer being used for $12,000.
B	Average Ltd., a manufacturer of metal ingots, sells an industrial forge that is no longer being used for $25,000.
C	Excellent Co. sells appliances and has recently decided to start delivering the appliances for a fee. Excellent sold a fridge to a customer and charged $75 for a delivery fee.
D	Great Inc. is a consignee of sculptures and sells one piece for $8,000. The cash is then sent to the artist.

Question 4 (1 point)

On February 1, 2020, Manna Corp. (Manna) signed a contract to provide cleaning services to a customer for a one-year period. On that date, the customer paid a deposit of $200. The cleaning will be performed monthly, and the annual cleaning fees are $3,000. Manna performed the cleaning in February and March but has not yet been paid for its services. Manna has a March 31 year end and reports under ASPE. How much revenue should Manna recognize from this contract for its March 31, 2020, year end?

Question 4 options:

	$0
	$200
	$500
	$3,000

Question 5

Which of the following is one of the three criteria for ASPE revenue recognition?

Question options:

A	Delivery has occurred.
B	Revenue can be reliably measured.
C	The customer has received the invoice.
D	Customer payment has been received.