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Advance Accounting Theory

1. When are revenues considered to have been earned? Define the term “realized or realizable” in revenue recognition.

2. What are the four conditions for revenue recognition?

3. When specific refund rights exist in a multiple-deliverable arrangement, what should be the amount of revenue allocable to a delivered item?

4. Should “Inconsequential or Perfunctory Performance Obligations” affect the recognition of revenue? (Answer Yes or No only)

5. List the three conditions where a remaining performance obligation may not be considered inconsequential or perfunctory.

6. List the conditions for surrender of control over financial assets transferred.

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