Questions
22730 Auditing and Assurance Services - Spring 2025 Prerequisite Accounting Quiz
Single choice
Q20. On the 1st of July, Customer A places a sales order for goods from Company X. The Sales Manager checks the warehouse and prepares the order ready for shipment on the 5th of July. The goods are delivered to the Customer on 8th of July and payment is made for the goods on the 28th of July. At which date should Company X recognise the sale?
Options
A.28th of July
B.8th of July
C.1st of July
D.5th of July
View Explanation
Verified Answer
Please login to view
Step-by-Step Analysis
Begin by identifying the event that transfers control of the goods to the customer, which triggers revenue recognition in most accounting frameworks.
Option 1: 28th of July. This date reflects when payment is received, not when control of goods passes. R......Login to view full explanationLog in for full answers
We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!
Similar Questions
Which of the following is not part of the FASB criteria for revenue recognition?
In the financial statement audit, who is responsible for using accurate revenue recognition accounting estimates to prepare the financial statements of publicly traded companies (issuers)?
Question1(c) On 1 July 2019, XYZ Ltd received $100,000 in cash from customer ABC for an order of 100,000 units of its product. By the end of the financial year (assume the financial year starts on 1 July 2019 and ends on 30 June 2020), XYZ Ltd had delivered 35,000 units of product to ABC (selling price per unit is $1). The rest of the cash received in in advance from ABC relates to goods that will be provided in the next financial year. XYZ sets its selling price by employing a 100% mark up on the cost of inventory.Which of the following statements is true for transactions between XYZ and ABC for the financial year ended 30 June 2020? XYZ’s COGS was $35,000 XYZ’s inventory decreased by $35,000 The closing balance of unearned revenue relating to ABC was $35,000 XYZ generated sales revenue of $65,000 from ABC XYZ’s COGS was $17,500 ResetMaximum marks: 1 Flag question undefined
In 2021, Estelle's Star Makers agreed to build a movie theater for $200,000. Expected costs for the theater follow: 2022, $10,000; 2023, $40,000; and 2024, $30,000. Assume that Estelle completed the theater on time and on budget, that Estelle's performance obligation for the theater is fulfilled over time, and that the costs incurred provide a close approximation of the value conveyed to the customer.Answer the following question(s) by filling in the blanks. Do not include any symbols besides decimals in your answers (do not input commas).Compute revenues and expenses for each year 2022 through 2024. Year 2022 2023 2024 Revenue [R2022] [R2023] [R2024] Expense [E2022] [E2023] [E2024] [R2022] =
More Practical Tools for Students Powered by AI Study Helper
Making Your Study Simpler
Join us and instantly unlock extensive past papers & exclusive solutions to get a head start on your studies!