Question 1

The percentage of completion can be measured in a number of ways, including:

Accepted Answer

A)   Physical estimates or surveys of the work performed to date.
B)   The work plan basis, which uses the project management plan to calculate the percentage of the construction completed.
C)   The billings basis, using the proportion that progress billings to date bear to the total estimated billings for the contract.
D)   Physical estimates or surveys of the work performed to date and the billings basis, using the proportion that progress billings to date bear to the total estimated billings for the contract.
E)   All of the given answers.F) None of the above
G) All of the above

Question 2

Which of the following is not a disclosure requirement of AASB 111?

Accepted Answer

A)   The amount of contract revenue recognised as revenue must be disclosed either on the face of the income statement or in the accompanying notes.
B)   Contract costs incurred must be disclosed either on the face of the income statement or in the accompanying notes.
C)   A liability being the gross amount due to customers for contract work.
D)   The gross amount of work progress must be disclosed in the balance sheet.
E)   For contracts in progress, the amount of advances received, must be disclosed either on the face of the income statement or in the accompanying notes.F) D) and E)
G) A) and C)

Question 3

Accounting standards require that the provision for doubtful debts should be shown as a deduction from the class of assets to which it relates. The net expense in relation to bad and doubtful debts must also be disclosed

Accepted Answer

A) True 
 B)False

Question 4

If the borrower prepays interest, the inflow of future economic benefits represented by the prepayment would not constitute an item of revenue to the lender because the lender has a present obligation to the borrower to provide finance for the period to which the prepayment relates.

Accepted Answer

A) True 
 B)False

Exam 16: Revenue Recognition Issues

If the borrower prepays interest, the inflow of future economic benefits represented by the prepayment would not constitute an item of revenue to the lender because the lender has a present obligation to the borrower to provide finance for the period to which the prepayment relates.

Correct Answer
verified

Accounting standards require that the provision for doubtful debts should be shown as a deduction from the class of assets to which it relates. The net expense in relation to bad and doubtful debts must also be disclosed

Correct Answer
verified

The percentage of completion can be measured in a number of ways, including:

Correct Answer
verified

Which of the following is not a disclosure requirement of AASB 111?

Correct Answer
verified

Exam 16: Revenue Recognition Issues

If the borrower prepays interest, the inflow of future economic benefits represented by the prepayment would not constitute an item of revenue to the lender because the lender has a present obligation to the borrower to provide finance for the period to which the prepayment relates.

Correct AnswerverifiedShow Answer

Accounting standards require that the provision for doubtful debts should be shown as a deduction from the class of assets to which it relates. The net expense in relation to bad and doubtful debts must also be disclosed

Correct AnswerverifiedShow Answer

The percentage of completion can be measured in a number of ways, including:

Correct AnswerverifiedShow Answer

Which of the following is not a disclosure requirement of AASB 111?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified