Question 1

Revenue from selling products is generally recognized

1. after costs are recovered.
2. as cash is collected.
3. at the point of delivery.
4. at the completion of production.

Question 2

The first step in the revenue recognition process under IFRS is

1. allocate the transaction price to the separate performance obligations.
2. determine the transaction price.
3. identify the separate performance obligations of the contract.
4. identify the contract with customers.

Question 3

A product and service are bundled together and sold to customers for $450. The fair values of the product and service are $350 and $150 respectively. Under the relative fair value method, how much would be allocated to the product?

1. $300.00
2. $350.00
3. $150.00
4. $315.00

Question 4

The new IFRS standard,IFRS 15 Revenue from Contracts with Customersadopts a(n)

1. cash-based approach to revenue recognition.
2. earnings approach to revenue recognition.
3. asset-liability approach to revenue recognition.
4. earned and realized approach to revenue recognition.

Question 5

At the time of contract signing,

1. a contract liability is recorded.
2. no journal entry is recorded.
3. a note to the financial statements must be included.
4. a contract asset is recorded.

please help me to select the correct answer. thanks