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CA Final Ind AS 115 Revenue from Contracts with Customers — practice questions — page 2

Explore 48 free Ind AS 115 Revenue from Contracts with Customers questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Ind AS 115 Revenue from Contracts with Customers questions and exercises with answers

Showing questions 31–48 of 48.

If returns cannot be estimated, when is revenue recognized?Read the answer and worked solution →A builder expects Rs 8,00,000 total profit and 25% is complete. Profit recognized?Read the answer and worked solution →Under the completed-contract method, a firm with one project shows what until the final year?Read the answer and worked solution →Under long-term contract accounting, when is an expected loss recognized?Read the answer and worked solution →The completion of production basis typically applies to which items?Read the answer and worked solution →Installment method: profit Rs 2,00,000, 45% collected. Profit recognized?Read the answer and worked solution →Cost recovery: cost 10,000, price 15,000, 13,000 collected. Profit recognized?Read the answer and worked solution →The deposit method is used when cash is received before what?Read the answer and worked solution →If collection is highly uncertain, what must the company do?Read the answer and worked solution →Which is one of the IFRS criteria for the critical event in a goods sale?Read the answer and worked solution →A cash flow statement splits cash flows into which three?Read the answer and worked solution →Why can a profitable company still run short of cash?Read the answer and worked solution →Which item does a cash flow statement exclude as a non-cash transaction?Read the answer and worked solution →Under IAS 7, where may interest paid be reported?Read the answer and worked solution →Purchase or sale of an asset is classified under which activity?Read the answer and worked solution →The indirect method of cash flow preparation starts from what?Read the answer and worked solution →In the indirect method, an increase in an asset account is treated how?Read the answer and worked solution →Repayment of debt principal belongs to which activity?Read the answer and worked solution →

Worked practice questions

If returns cannot be estimated, when is revenue recognized?

  1. At the point of sale
  2. When return right expires
  3. At the next quarter end
  4. When goods are shipped
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Correct answer: B. When return right expires

Without a reliable return estimate, revenue waits until the customer's right to return lapses.

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A builder expects Rs 8,00,000 total profit and 25% is complete. Profit recognized?

  1. Rs 1,00,000
  2. Rs 2,00,000
  3. Rs 4,00,000
  4. Rs 8,00,000
Show answer and solution

Correct answer: B. Rs 2,00,000

25 percent of Rs 8,00,000 equals Rs 2,00,000 of profit for the period.

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Under the completed-contract method, a firm with one project shows what until the final year?

  1. Full profit on the job
  2. Nil revenue and nil cost
  3. Half of the revenue
  4. Only the cost incurred
Show answer and solution

Correct answer: B. Nil revenue and nil cost

Revenue, cost and gross profit are held back until the project is fully complete.

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