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




Question 31 :
Revenue from Advertising Agency Commission is recognised when

  1. Advertisement appears before the public
  2. Advertisement agreement is signed
  3. Advertisement copy is drafted
  4. None of the above
  

Question 32 :
AS–9 does not deal with revenue arising from

  1. Sale of goods
  2. Interest
  3. Service contracts
  4. Construction contracts
  

Question 33 :
Installation fees are recognised as revenue when installation is completed and it is accepted by the clients.

  1. TRUE
  2. FALSE
  

Question 34 :
AS–9 explains when the revenue should be recognised in Profit - Loss Account.

  1. TRUE
  2. FALSE
  

Question 35 :
Revenue from sale of goods is recognised when

  1. Sale is made
  2. Collection is made from debtors
  3. Goods are produced
  4. None of the above
  

Question 36 :
Following is not covered by AS 9

  1. Dividend
  2. Interest
  3. Royalty
  4. Lease Rent
  

Question 37 :
Trade discount should be

  1. Added to revenue
  2. Ignored
  3. Deducted from revenue
  4. Added to cost
  

Question 38 :
Revenue from instalment sale is recognised when

  1. An agreement is signed
  2. Goods are delivered
  3. Initial payment is received
  4. Last instalment is paid
  

Question 39 :
Interest is recognised on receipt basis.

  1. TRUE
  2. FALSE
  
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