questions:
1. Generally, revenue from sales should be recognized at a pointwhen
Answer
a.
management decides it is appropriate to do so.
b.
the product is available for sale to the ultimate consumer.
c.
the entire amount receivable has been collected from thecustomer and there remains no further warranty liability.
d.
none of these.
2. What is the general approach as to when product costs arerecognized as expenses?
Answer
a.
In the period when the expenses are paid.
b.
In the period when the expenses are incurred.
c.
In the period when the vendor invoice is received.
d.
In the period when the related revenue is recognized.
3. Recognition of expense related to amortization of anintangible asset illustrates which principle of accounting?
Answer
a.
Expense recognition.
b.
Full disclosure.
c.
Revenue recognition.
d.
Historical cost.
4. Which accounting assumption or principle is being violated ifa company is a party to major litigation that it may lose anddecides not to include the information in the financial statementsbecause it may have a negative impact on the company's stockprice?
Answer
a.
Full disclosure.
b.
Going concern.
c.
Historical cost.
d.
Expense recognition.
5. Where is materiality not used in providingfinancial information?
Answer
a.
Applying the revenue recognition principle.
b.
Determining what items to include in the financialstatements.
c.
Applying the going concern assumption.
d.
Determining the level of disclosure.
questions:
1. Generally, revenue from sales should be recognized at a pointwhen
Answer
a.
management decides it is appropriate to do so.
b.
the product is available for sale to the ultimate consumer.
c.
the entire amount receivable has been collected from thecustomer and there remains no further warranty liability.
d.
none of these.
2. What is the general approach as to when product costs arerecognized as expenses?
Answer
a.
In the period when the expenses are paid.
b.
In the period when the expenses are incurred.
c.
In the period when the vendor invoice is received.
d.
In the period when the related revenue is recognized.
3. Recognition of expense related to amortization of anintangible asset illustrates which principle of accounting?
Answer
a.
Expense recognition.
b.
Full disclosure.
c.
Revenue recognition.
d.
Historical cost.
4. Which accounting assumption or principle is being violated ifa company is a party to major litigation that it may lose anddecides not to include the information in the financial statementsbecause it may have a negative impact on the company's stockprice?
Answer
a.
Full disclosure.
b.
Going concern.
c.
Historical cost.
d.
Expense recognition.
5. Where is materiality not used in providingfinancial information?
Answer
a.
Applying the revenue recognition principle.
b.
Determining what items to include in the financialstatements.
c.
Applying the going concern assumption.
d.
Determining the level of disclosure.
