ACCTG 3100 QUIZ 2

Please select the best answer in every item.

1.
1 point

Both statements are correct.

Both statements are incorrect.
Statement 1 is correct.
Statement 2 is correct.

2.
1 point

Both statements are correct.

Both statements are incorrect.
Statement 1 is correct.
Statement 2 is correct.

3.
1 point

Both statements are correct.

Both statements are incorrect.
Statement 1 is correct.
Statement 2 is correct.

4.
1 point

Both statements are correct.

Both statements are incorrect.
Statement 1 is correct.
Statement 2 is correct.

5.
1 point

Both statements are correct.

Both statements are incorrect.
Statement 1 is correct.
Statement 2 is correct.

6.
1 point

It is applicable to both cases.

It is not applicable to both cases.
It is applicable to case 1.
It is applicable to case 2.

7.
1 point

Both statements are correct.

Both statements are incorrect.
Statement 1 is correct.
Statement 2 is correct.

8.
1 point

Both statements are correct.

Both statements are incorrect.
Statement 1 is correct.
Statement 2 is correct.
9.
1 point

Both statements are correct.

Both statements are incorrect.
Statement 1 is correct.
Statement 2 is correct.

10.
1 point

Both statements are correct.

Both statements are incorrect.
Statement 1 is correct.
Statement 2 is correct.

11.
1 point

Both cases are correct.

Both cases are incorrect.
Case 1 is correct.
Case 2 is correct.

12.
1 point

Both cases are correct.

Both cases are incorrect.
Case 1 is correct.
Case 2 is correct.
13. If the consideration in the contract is other than cash, revenue is recognized at:
1 point

The fair value of the non-cash consideration

The selling price of the related good or service
Choice (a) except when this is not available, then choice (b)
None of the above

14. Which of the following would not cause a consideration in a contract with customer to
vary?
1 point

Discount
Sale with right of return
Price concession
Sale on approval

15.
1 point

i only
ii only
i and ii
None of these

16. A consideration received from a contract with a customer that does not meet the criteria
under Step 1 of PFRS 15 is
1 point

Recognized as a liability
Recorded through memo entry only
Disclosed only
B and C

17. In identifying the performance obligation, which of the following shall be accounted for
separately? I - A promise to transfer a distinct good or service. II - A promise to transfer a
distinct bundle of goods or services. III - A promise to transfer a series of distinct goods or
services that are substantially the same and have the same pattern of transfer to the
customer. IV -A promise that is implied by the entity's customary business practices which, at
contract inception, creates a valid expectation on the part of the customer that the entity will
satisfy the promise.
1 point
I only
II Only
I, II and III only
All of these

18. In identifying the contract that must be accounted for under PFRS 15, which of the
following must be met?
1 point

The collection of the consideration must be certain

The contract must be in writing so that there will be no doubt in the customer's ability and intention to pay
the consideration
The promised goods or services must have already been transferred to the customer
Both contracting parties must acknowledge whether explicitly or implicitly, the rights, the obligations
created under the contract

19. A good service that is not distinct (choose the incorrect one)
1 point

Shall be combined with the other promises in the contract

May be treated, together with other promises in the contract, as a single performance obligations
May be identified as a part of a bundle of goods or services or a part of a series of goods or services to
be transferred to the customer
Shall be ignored. The entity allocates the transaction price only to the other promises in the contract that
are distinct.

20. If the timing agreed payments provides the customer with a significantly benefit of
financing (choose the incorrect statement)
1 point

The entity recognizes revenue equal to the present value of the consideration receivable
The entity recognizes revenue equal to the cash selling price of the goods or services transferred to the
customer
The entity need not discount the consideration if the consideration is expected to be received within one
year
The entity recognizes revenue when the related good or service transfers to the customer. However,
when the implied interest is recognized in profit or loss over the period from the date the good or service
is transferred to the customer until the date the consideration is fully received
All statements are correct
All statements are incorrect

21. Does the contract qualify for revenue recognition under PFRS 15 on contract inception?
2 points
Yes, because the customer obtained the control of the building at the contract of inception.
Yes, because all of the requirements in a contract were met.
No, because the company operates in a different line of business of the entity from what the customer
intends to open as a new business.
No, because the customer's ability and intention to pay may be in doubt.

22. How will the Php 50,000 be initially accounted for in the books of the entity?
2 points

Ignored
A liability
A disclosure
A revenue

23. Is the maintenance service a performance obligation?

2 points

No. The maintenance service is not a performance obligation.

Maybe. The maintenance service is partly a performance obligation.
Yes. The maintenance service is a performance obligation explicitly provided in the contract.
Yes. The maintenance service is a performance obligation implicitly provided in the contract.

24. Is the maintenance service a performance obligation?

2 points

No. The maintenance service is not a performance obligation.

Maybe. The maintenance service is partly a performance obligation.
Yes. The maintenance service is a performance obligation explicitly provided in the contract.
Yes. The maintenance service is a performance obligation implicitly provided in the contract.

25. Is the maintenance service a performance obligation?

2 points

No. The maintenance service is not a performance obligation.

Maybe. The maintenance service is partly a performance obligation.
Yes. The maintenance service is a performance obligation explicitly provided in the contract.
Yes. The maintenance service is a performance obligation implicitly provided in the contract.

26. How much is to be allocated to Product A?

2 points

Php 3,333
27. How much is to be allocated to Product B?
2 points

Php 1,667

28. How much is to be allocated to Product C?

2 points

Php 5,000

29. What estimation method must be used for product B?

2 points

Adjusted market assessment

Expected cost plus a margin
Residual Approach
Not applicable. Stand alone-price is available.
30. What estimation method must be used for product C?
2 points

Adjusted market assessment

Expected cost plus a margin
Residual Approach
Not applicable. Stand alone-price is available.

A copy of your responses will be emailed to roque.jeniah@clsu2.edu.ph.

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