BVR & ASSOCIATES
  • HOME
  • OUR SERVICES
  • About
  • Articles
  • LAW
  • CPA REVIEW

a compilation of cpa review questions that can help aspiring student
to become cpa

Accounting Theory 1-11

3/3/2018

0 Comments

 
1. Revenue from sale of goods shall be recognized when all of the following conditions have been satisfied, except

a. the entity has transferred to the buyer the significant risks and rewards of ownership of the goods.
b. the entity retains either continuing managerial involvement of effective control the goods sold.
c. the amount of revenue can be measured reliably
d. it is probable that economic benefits will flow to the entity

2. Which is incorrect concerning recognition of revenue?

a. revenue from rendering of services shall be recognized by reference to the stage of completion of the transaction at balance sheet date.
b. interest revenue shall be recognized on a time proportion basis that does not take into account the proportion basis that does not take into account the effective yield on the asset
c. royalty revenue shall be recognized on an accrual basis in accordance with the substance of the relevant agreement.
d. dividend revenue shall be recognized when the shareholder's right to receive payment is established.

3. Which definition is correct relating to elements of financial performance?

a. gains are increases in equity from ongoing major or central operations of an entity
b. expenses are outflows of assets or liabilities incurred from peripheral or incidental transactions of an entity
c. revenues are inflows or other enhancements of assets or settlements of liabilities from ongoing major or central operations.
d. losses are all decreases in equity other than from transactions with owners.

4. According to conceptual framework, the term "income"

a. includes change in market value of investments in marketable securities classified as available for sale
b. includes foreign currency translation adjustment
c. includes gain resulting from the sale of a productive asset to another party in an arm's length transaction
d. is the same as comprehensive income

5. The revenue principle states that revenue shall be recognized at a point when

a. an exchange transaction involving goods and services has occurred and the earnings process is essentially complete
b. an order for shipment of a definite amount of merchandise has been received
c. a contract between buyer and seller has been signed by both parties
d. the seller has shipped merchandise to a customer under the terms that the customer need not pay for the merchandise until it is sold

6.What is an example of an accounting principle

a. the fact that one type of accounting is designed to help managers identify, measure and control operating costs
b. the definition of when income is to be recognized
c. the fact that business transactions involve a completed exchange of economic transactions
d. the definition of assets minus liabilities equals shareholders' equity

7. Normally, revenue is recognized

a. when the customer's order is received
b. when the customer's order is accompanied by a check
c. only if the transaction will create an account receivable
d. when the title to the goods changes

8. Depending on the nature of the entity, revenue may be recognized based on different acceptable  criteria. Which of the following is not an acceptable basis for recognition of revenue?

a. passage of time
b. performance of service
c. completion of percentage of a projects
d. upon signing of contract

9. Generally, recognition criteria  are met and revenue is recognized

a. at the point of sale
b. when cause and effect are associated
c. at the point of cash collection
d. at the appropriate points throughout the operating cycle

10. Which of the following best describes the conditions that must be present for the recognition of revenue?

a. the revenue must be earned, measurable and collected
b. the revenue must be earned, measurable and collectible
c. the revenue must be earned and collectible
d. the revenue must be measurable and collectible
 

Answer:
1.b
2.b
3.c
4.c
5.a
6.b
7.d
8.d
9.a
10.b

0 Comments



Leave a Reply.

    Author

    A CPA who want to help accounting student to become one.

    Archives

    June 2020
    March 2018
    January 2018
    December 2017

    Categories

    All
    Theory Of Accounts

    RSS Feed

Copyright Notice
Copyright © – 2020, All Rights Reserved.

Disclaimer
This  project primarily designed to assist students of law  and accounting in their studies. It is merely a tool. The use of our Services does not guarantee success in obtaining a law/accounting degree nor in passing the Bar/Board Exams. We makes no warranties or representations of any kind, whether expressed or implied for the Services provided.
The cases, laws, and other publications found in this site are of public domain, collected from public sources such as the Supreme Court online library. The content however have been heavily modified, formatted, and optimized for better user experience, and are no longer perfect copies of their original. We gives no warranty for the accuracy or the completeness of the materials. We also reserves the right to further improve, add, modify, or remove content with or without prior announcements.
This site also contains materials published by the students, professors, lawyers, and other users of the our Services. These materials are owned by such users and of their sole responsibility. While we may review user-published content, please do not assume that content you are accessing has been reviewed or curated. You may report abusive content through the listed contact details.
We does not guarantee against any loss or damage caused by third persons, delays, interruptions, unavailability, or by the termination of its Services.
We reserves the right to amend the terms and policies for its Services.

Terms of Service
By using our Services, you are agreeing to these terms. Please read them carefully.
Access our Services only through the interface and instructions provided. Do not misuse the Services, or use them in such ways that may interfere their availability, or in ways that may cause discredit to you, your school, or your profession.
These terms do not give you ownership of any intellectual property rights to the content you access on our Services. Do not use content from our Services other than for personal purposes unless you obtain permission from its owner or are otherwise permitted by law. Do not remove, obscure, or alter any legal notices and attributions displayed in or along with our Services.
We may send you service announcements, administrative messages, and other information. You may opt out of some of those communications.
Our Services are designed to be accessible on mobile devices. Do not use such Services in a way that distracts you and prevents you from obeying traffic or safety laws.
We may suspend or stop providing our Services to you if you do not comply with these terms and policies or if we are investigating suspected misconduct.

Privacy
Some services require you to login or register with minimal personal information this site.
Collected Information
Collected information includes user name, email address, Facebook ID and photo. The user may also optionally provide school, year level, BAR year, profession, office, address, and other information which may assist in improving our Services.
Uses of the Information
The collected information will only be used in connection with the use or for the improvement of our Services.
Users Created Content
Content created by users are published and shared for public use. Published content is always attributed to the author through his user account. A user may remain anonymous by changing his "display name" under his profile.
Data Analytics
We conducts data analytics for the improvement of the usability and design of our Services and the user experience. These may include but not limited to tracking time spent on the site, services availed, number of contents created or shared.

Content
Our Services allow you to create casebooks, digests, outlines, notes, and other content. You retain ownership of intellectual property rights that you hold in that content.
When you create content through our Services, you give us (and those we work with) a worldwide license to use, host, store, reproduce, modify, create derivative works, communicate, publish, publicly perform, publicly display and distribute such content. This license continues even if you stop using our Services (for example: your list of cases, digests, and outlines in your casebooks).
Make sure you have the necessary rights to grant us this license for any content that you submit to our Services.
We reserves the right to review your published content and may remove materials that are offensive, abusive, of no value, or not in line with the purpose of our Services. The amount of content or materials that you publish may be limited by us.
We also used cookies in our website.

Contact Us
  • HOME
  • OUR SERVICES
  • About
  • Articles
  • LAW
  • CPA REVIEW