Quiz Summary
0 of 30 Questions completed
Questions:
Information
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading…
You must sign in or sign up to start the quiz.
You must first complete the following:
Results
Results
0 of 30 Questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 point(s), (0)
Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- 21
- 22
- 23
- 24
- 25
- 26
- 27
- 28
- 29
- 30
- Current
- Review
- Answered
- Correct
- Incorrect
-
Question 1 of 30
1. Question
1. Which one of the following is a correct statement in relation to IFRS 15 Revenue from Contracts with Customers?
CorrectIncorrect -
Question 2 of 30
2. Question
2. Zulu Ltd (Zulu) enters into a contract with a customer to deliver a phone package to the customer in return for an upfront payment of $1000. Under the terms of the contract the customer will receive a ‘free’ phone upon signing the contract, and phone service for two years. Zulu also sells phones and phone services separately.
Which one of the following statements is correct?
CorrectIncorrect -
Question 3 of 30
3. Question
3. Entity shall recognise revenue to depict the transfer of promised goods or services to customers in the _________ amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
CorrectIncorrect -
Question 4 of 30
4. Question
4. Which of the following is an exception for application of IFRS 15?
CorrectIncorrect -
Question 5 of 30
5. Question
5. A contract does not exist if …
CorrectIncorrect -
Question 6 of 30
6. Question
6. A contract is wholly unperformed if …
CorrectIncorrect -
Question 7 of 30
7. Question
7. With regard to the definition of revenue given by IFRS15, which of the following statements is true?
CorrectIncorrect -
Question 8 of 30
8. Question
8. If the agreed date of payment by a customer is later than the date on which goods or services are transferred to that customer, part of the consideration should always be treated as finance income (not revenue). True or False?
CorrectIncorrect -
Question 9 of 30
9. Question
9. Step 1 of the “five-step model” states that certain conditions must be satisfied before an entity can account for a contract with a customer. Which of the following is not one of these conditions?
CorrectIncorrect -
Question 10 of 30
10. Question
10. A contract modification is always treated as a separate contract for the purposes of IFRS15. True or False?
CorrectIncorrect -
Question 11 of 30
11. Question
11. A single contract with a customer could include more than one performance obligation and it is necessary to identify each performance obligation in the contract. True or False?
CorrectIncorrect -
Question 12 of 30
12. Question
12. A company enters into a contract to build a factory for a customer. The agreed price is £2m and the specified completion date is 31 October 2016. However, the contract provides that the company should receive an incentive payment of a further £250,000 if the factory is completed by 30 September 2016. Similarly, the price will be reduced by £250,000 if the factory is not completed until after 30 November 2016.
The company estimates that there is a 15% probability that the factory will be completed by 30 September 2016, an 80% probability that it will be completed in October 2016 or November 2016 and a 5% probability that it will not be completed until after 30 November 2016.
What is the expected value of the transaction price for this contract?
CorrectIncorrect -
Question 13 of 30
13. Question
13. The accounting principle applied by IFRS15 when determining whether or not revenue should be recognised in respect of a repurchase agreement is:
CorrectIncorrect -
Question 14 of 30
14. Question
14. A performance obligation is satisfied over time if:
CorrectIncorrect -
Question 15 of 30
15. Question
15. A company enters into a contract to supply three distinct products to a customer. The promise to supply each of these products is regarded as a separate performance obligation. The stand-alone prices of the three products (if sold singly) are:
Product X £12,500
Product Y £24,000
Product Z £27,500
The agreed contract price is £57,600. How should this price be allocated to performance obligations?
CorrectIncorrect -
Question 16 of 30
16. Question
16. If a contract with a customer provides a warranty, then the warranty always represents a separate performance obligation and part of the transaction price must be allocated to it. True or False?
CorrectIncorrect -
Question 17 of 30
17. Question
17. In general, contract costs incurred in relation to a contract with a customer must be:
CorrectIncorrect -
Question 18 of 30
18. Question
18. The carrying amount of contract costs relating to a performance obligation and recognised as an asset is £120,000. Further costs required in order to satisfy the obligation are estimated to be £30,000. The consideration receivable by the company when the obligation is satisfied is £132,000.
Calculate the amount of the impairment loss (if any) which should be deducted from the contract asset and recognised as an expense.
CorrectIncorrect -
Question 19 of 30
19. Question
19. The incremental costs of obtaining a contract must be recognised as an asset if the entity expects to recover those costs.
CorrectIncorrect -
Question 20 of 30
20. Question
20. The asset recognised in respect of the costs to obtain or fulfill a contract is not amortised on a systematic basis that is consistent with the pattern of transfer of the goods or services to which the asset relates.
CorrectIncorrect -
Question 21 of 30
21. Question
21. In case of option to purchase warranty separately (extended), warranty is distinct and should be recognized as:
CorrectIncorrect -
Question 22 of 30
22. Question
22. A repurchase agreement is a contract in which an entity sells an asset and also promises or has the option (either in the same contract or in another contract) to repurchase the asset.
CorrectIncorrect -
Question 23 of 30
23. Question
23. The standard introduces a ______ step model for the recognition of revenue
CorrectIncorrect -
Question 24 of 30
24. Question
24. In case of forward and call option, the customer:
CorrectIncorrect -
Question 25 of 30
25. Question
25. The reason for the bill-and-hold arrangement must be:
CorrectIncorrect -
Question 26 of 30
26. Question
26. Indicators that an arrangement is a consignment arrangement include, but are not limited to, the following:
I. The product is controlled by the entity until a specified event occurs, such as the sale of the product to a customer of the dealer or until a specified period expires;
II. The entity is able to require the return of the product or transfer the product to a third party (such as another dealer); and
III. The dealer does not have an unconditional obligation to pay for the product (although it might be required to pay a deposit).CorrectIncorrect -
Question 27 of 30
27. Question
27. Where a contract has multiple performance obligations, an entity will allocate the transaction price to the performance obligations in the contract by reference to the relative standalone selling prices of the goods or services promised. This allocation is made at:
CorrectIncorrect -
Question 28 of 30
28. Question
28. Step one in the five-step model requires the ——————
CorrectIncorrect -
Question 29 of 30
29. Question
29. When a contract contains more than one distinct performance obligation, an entity:
CorrectIncorrect -
Question 30 of 30
30. Question
30. A good or service is distinct if the following criteria are met:
I. The customer can benefit from the good or services on its own or in conjunction with other readily available resources; and
II. The entity’s promise to transfer the good or service to the customer is separately identifiable from other promises/elements in the contract.CorrectIncorrect