Assessment/Quiz in PFRS 15 Revenue Recognition.
BERNAROSE A. DELA CUADRA
Choose the Letter of the Correct Answer.
1. What is the core principle of PFRS 15?
a. Recognition of expenses
b. Measurement of fair value
c. Recognition of revenue
d. Presentation of financial statements
2. Under PFRS 15, when should revenue be
recognized from a customer contract?
a. When the performance obligation is satisfied
b. When the invoice is issued
c. When the payment is received
d. At the end of the financial year
3. Which of the following is NOT a step in the
revenue recognition process under PFRS 15?
a. Identify the contract with the customer
b. Identify the performance obligations in the
contract
c. Determine the fair value of assets exchanged
d. Recognize revenue when the performance
obligation is satisfied
4. How does PFRS 15 define a performance
obligation?
a. An obligation to perform services
b. A promise to transfer goods or services
c. A contractual right to receive payment
d. A legal obligation to the customer
5. Under PFRS 15, how should transaction
prices be allocated to performance obligations in
a contract?
a. Proportionately to the transaction price
b. Based on the seller's cost structure
c. Using the relative standalone selling prices
d. Equally among all obligations
6. Which of the following is an example of a
variable consideration under PFRS 15?
a. Fixed monthly subscription fee
b. Sales discounts
c. Upfront payment
d. Advance payment
7. When should a contract modification be
accounted for under PFRS 15?
a. When requested by the customer
b. When the modification is approved by
management
c. When there is an increase in the scope of the
contract
d. Only at the end of the contract term
8. How should a significant financing
component in a contract be accounted for under
PFRS 15?
a. Recognize it separately as interest income
b. Ignore it for accounting purposes
c. Adjust the transaction price for the time value
of money
d. Recognize it as a performance obligation
9. Which of the following is a criterion for
recognizing revenue over time under PFRS 15?
a. The customer pays upfront
b. The goods or services are highly customizable
c. The customer simultaneously receives and
consumes the benefits
d. The seller has an enforceable right to payment
10. How should a refund liability be treated
under PFRS 15?
a. Recognized when the refund is requested
b. Recognized only if a refund is probable
c. Always recognized as a reduction of revenue
d. Ignored for accounting purposes
 Assessment/Quiz in PFRS 15 Revenue Recognition.
11. What is the term used in PFRS 15 to describe
the amount of consideration to which an entity
expects to be entitled in exchange for
transferring promised goods or services to a
customer?
a. Contract price
b. Transaction price
c. Net realizable value
d. Gross profit
12. When is revenue recognized over time for a
performance obligation?
a. When the customer pays upfront
b. When the goods or services have standalone
value
c. When the customer simultaneously receives
and consumes the benefits
d. When the customer controls the asset as it is
created or enhanced
13. How does PFRS 15 require entities to
account for shipping and handling activities?
a. Always included in the transaction price
b. Treated as a separate performance obligation
c. Ignored for accounting purposes
d. Recognized as a separate expense
14. What is the primary criterion for determining
whether a promise to grant a license to
intellectual property is satisfied over time or at a
point in time?
a. The nature of the intellectual property
b. The level of customization
c. The entity's performance
d. The customer's payment terms
15. Which of the following is a step in the five-
step model of revenue recognition under PFRS
15?
a. Recognize revenue when the customer is
invoiced
b. Allocate the transaction price to performance
obligations
c. Wait until the end of the contract to recognize
revenue
d. Recognize revenue based on the seller's past
performance
16. How should an entity account for the costs
incurred to fulfill a contract under PFRS 15?
a. Recognize them as an expense when incurred
b. Capitalize them as an asset
c. Treat them as a separate performance
obligation
d. Ignore them for accounting purposes
17. Under PFRS 15, when can an entity
recognize revenue for a good or service
transferred to a customer?
a. At the time of invoicing
b. When the customer pays for the good or
service
c. When the customer obtains control of the
good or service
d. At the end of the reporting period
18. How should an entity account for contract
costs that are not within the scope of another
standard?
a. Expense them as incurred
b. Capitalize them as an intangible asset
c. Treat them as a separate performance
obligation
d. Recognize them only when the contract is
completed
19. What is the term used in PFRS 15 to
describe the transfer of control of a good or
service to a customer?
a. Delivery
b. Fulfillment
c. Satisfaction
d. Performance