Harisesnin.com Quiz Day 5

Step number 4 of process for revenue recognition is determine the transaction price:

• True

• False

Step number 2 of process for revenue recognition is identify the separate performance obligations in the contract:

• True

• False

The revenue cycle's primary objective is.......................

• to provide quality product in order to maximize market share

• to provide the right product in the right place at the right time for the right price

• to maximize the company's profit.

The basic document created in the billing process is the definition of

• bill of lading

• sales order

• sales invoice

The price at which goods or services are offered by a business to their customers is called......................

• Variable Cost

• Selling Price

• Cost

One of the purposes of establishing a relationship with a customer in the beginning of the selling process is...............................

• to put the customer on guard

• to make a single sale

• to gain the customer's confidence

How does an entity recognize revenue in accordance with IFRS 15 (PSAK 72)?

• An entity should recognize revenue when (or as) the entity satisfies a performance obligation by transferring control of a promised good or service to a customer

• An entity should recognize revenue when the seller has transferred to the buyer the significant risks and rewards of ownership of the goods;

• An entity should recognize revenue when the amount of revenue can be measured reliably.

Which of the following is least likely to be considered an inherent risk relating to receivables and revenues?

• Decline in sales due to economic declines

• Decline in sales due to product obsolescence

• Over-recorded sales due to a lack of control over the sales entry function

The primary objective of the revenue cycle is......................................

• to maximize revenue and minimize expense

• to provide the right product in the right place at the right time at the right price

• to reduce outstanding accounts receivable balances through increased cash sales

To determine that all sales have been recorded, the auditors would select a sample of transactions from the.............................

• Shipping documents file

• Sales journal

• Accounts receivable subsidiary ledger