B.COM AFM-1 (Revenue Recognition) MCQ's




Question 1 :
Goods are installed at the buyer's place to his satisfaction, the revenue can be recognised.

  1. TRUE
  2. FALSE
  

Question 2 :
AS 9 deals with government grants.

  1. TRUE
  2. FALSE
  

Question 3 :
As per AS–9 revenue from sale of goods is recognised when the seller _____ the goods to the buyer for a _____.

  1. transfers, consideration
  

Question 4 :
Revenue from cosignment is recognised when

  1. Goods are sent on consignment
  2. Goods are sold by consignee
  3. When account sale is received from the consignee
  4. When proforma invoice is sent by the consignor
  

Question 5 :
The buyer requests delayed delivery although he purchases the _____, takes the _____, and accepts billing, in this case the sale is complete.

  1. goods, title
  

Question 6 :
AS 9 deals with insurance contracts.

  1. TRUE
  2. FALSE
  

Question 7 :
AS–9 is applicable to _____ enterprises.

  1. all
  2. selective
  3. some
  4. None of the above
  

Question 8 :
Revenue from dividend is recognised when

  1. Dividend is received
  2. Right to receive dividend is established
  3. Amount is credited to Bank Account
  4. Dividend warrant is despatched by the company
  

Question 9 :
AS–9 suggests revenue from sale of goods is recognised when the seller transfers the goods to the buyer for a consideration.

  1. TRUE
  2. FALSE
  

Question 10 :
Revenue means

  1. Sales
  2. Income
  3. Gains
  4. Gross inflow of benefits from ordinary activities
  

Question 11 :
AS 9 is optional.

  1. TRUE
  2. FALSE
  

Question 12 :
Dividend is recognised as income when it is declared.

  1. TRUE
  2. FALSE
  

Question 13 :
Revenue should be recognised when goods are installed at the buyer's place to his _____ and goods are inspected and _____ by the buyer.

  1. satisfaction, accepted
  

Question 14 :
Revenue from Hire purchase sale is recognised when

  1. An agreement is signed
  2. Goods are delivered
  3. When last instalment is received
  4. None of the above
  

Question 15 :
Revenue from sale of goods arises when

  1. Goods are sold out
  2. Goods are delivered
  3. Goods are depatched
  4. None of the above
  

Question 16 :
AS 9 is mandatory.

  1. TRUE
  2. FALSE
  

Question 17 :
AS–9 : Revenue Recognition is mandatory and applicable to all enterprises.

  1. TRUE
  2. FALSE
  

Question 18 :
Revenue from Royalty is recognised on

  1. Cash basis
  2. Accrual basis
  3. Signing the agreement
  4. None of the above
  

Question 19 :
The AS deals with revenue recognition is

  1. AS–1
  2. AS–9
  3. AS–3
  4. AS–10
  

Question 20 :
Trade discount should be

  1. Deducted from revenue
  2. Added to revenue
  3. Ignored
  4. None of the above
  

Question 21 :
Revenue can be recognised if the goods are sent to the buyer by the seller without consideration.

  1. TRUE
  2. FALSE
  

Question 22 :
Revenue from service is recognised when

  1. Service is rendered
  2. Service is to be rendered
  3. Contract of service is made
  4. None of the above
  

Question 23 :
In consignment revenue is recognised when

  1. Goods are sent on consignment
  2. Goods are received by the consignee
  3. Goods are sold out by the consignee
  4. All of the above
  

Question 24 :
Revenue from free sample is recognised when

  1. Goods are distributed free of cost
  2. Goods are used by the buyer
  3. None of the above
  4. Revenue not recognised
  

Question 25 :
Revenue from interest is recognised when

  1. Interest is received
  2. Loan is repaid
  3. Interest accrues on time basis
  4. When loan is taken
  

Question 26 :
Dividend is recognised revenue when

  1. It is recommended
  2. It is declared
  3. It is appropriated
  4. It is paid
  

Question 27 :
Royalty is recognised on receipt basis.

  1. TRUE
  2. FALSE
  

Question 28 :
The buyer purchases the goods, takes the title and accepts billing, the revenue will be recognised.

  1. TRUE
  2. FALSE
  

Question 29 :
AS–9 explains when the _____ should be recognised in the Profit - Loss Account.

  1. All of the above
  2. revenue
  3. Divedent
  4. Royalty
  

Question 30 :
Installation fees are recognised as revenue when the installation is _____ and its is _____ by the client.

  1. completed, accepted
  
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