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PFRS 15 Exam Questions And Correct Answers
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PFRS 15 Exam Questions And Correct Answers ...
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PFRS 15 Exam Questions And CorrectAnswers
Revenue Recognition principle - Answer recognize revenue in the accounting period
when the performance obligation is satisfied
Identifying the contract with the customer - Answer -First step in the five step
framework
- contract can be done orally or writing
Subscriptions contract, contract of sale, construction contract, franchise contract -
Answer Different types of contracts
Both statements are true - Answer A contract does not exist if:
(1) Neither the customer or the seller has performed any obligations under the contract
(2) Both the seller and the customer can terminate the contract without penalty,
There is more than 50% chance that the collection under the contract is secured -
Answer The consideration under the contract must be probable. What does probable
mean?
(1) no remaining obligation
(2) non-refundable - Answer Any consideration received from the contract is recognized
as a liability and recognized as revenue only when:
(1) The entity has _______________ (3 words) to transfer goods, and
(2) All or substantially all of the consideration has been received and is ____________
Consideration - Answer It is the money received from customer
Performance Obligation - Answer Obligation of a seller to transfer to the customer:
(1) good or service that is distinct or separable
(2) series of goods or services that are substantially the same
Criteria for determining whether a good or service is distinct: - Answer (1) The customer
can benefit from the good or service "in its own"
(2) The promise to transfer the goods or services is "separately identifiable from other
goods" or services in the contract.
Transaction price - Answer Amount of consideration to which an entity expects to be
entitled in exchange for transferring promised goods or services to a customer and the
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