One of the conditions that must be satisfied in order to recognize revenue in a

transaction involving the rendering of services over a contractual period is that the
stage of completion of the transaction at the end of the reporting period can be
measured reliably. Which of the following methods for determining the stage of
completion of a contract involving the rendering of services are specifically
referred to in PFRS 15 as being acceptable?
I. Costs incurred to date as a percentage of the estimated total costs of the
transaction
II. Advances received to date as a percentage of the total amount receivable
III. Surveys of work performed
IV. Revenue to date divided by total contract revenue
a. I, III, IV b. I, III c. I, II, IV d. I, II, III

According to PFRS 15, revenue from a performance obligation that is not satisfied over
time is
recognized
a. over time as the entity progresses towards the complete satisfaction of the obligation.
b. at a point in time when the performance obligation is satisfied.
c. when the contract ceases to be enforceable.
d. a or b

Which is incorrect concerning recognition of revenue?

a. Revenue from rendering of services over an extended contractual period shall
be recognized by reference to the stage of completion of the transaction at
balance sheet date.
b. Interest revenue shall be recognized on a time proportion basis that does not
take into account the effective yield on the asset.
c. Royalty revenue shall be recognized on an accrual basis in accordance with the
substance of the relevant agreement,
d. Dividend revenue shall be recognized when the stockholder’s right to receive
payment is established.