Correct Answer:
A. A performance obligation is satisfied by transferring control of goods or services to the customer
IFRS 15 follows a five-step model that recognizes revenue as control is transferred.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
Under IFRS 15, revenue is recognized when:
Related MCQs
Surrender of savings means that:
A.
Funds are spent quickly at year end
B.
Departments keep unspent money for the next year
C.
Unspent funds that will not be needed are returned to the government before the end of the fiscal year
D.
Savings are invested in bonds
Correct answer is:
C. Unspent funds that will not be needed are returned to the government before the end of the fiscal year
Do you agree with this answer?
Sensitivity analysis in capital budgeting examines:
A.
Only the best case scenario
B.
Past performance of the firm
C.
How changes in one input variable affect the project's NPV
D.
The effect of tax rates on dividends
Correct answer is:
C. How changes in one input variable affect the project's NPV
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Vouching, which starts from the accounting records and traces back to supporting documents, is mainly used to test for:
A.
Overstatement (occurrence/existence)
B.
Understatement (completeness)
C.
Classification of liabilities
D.
Going concern doubts
Correct answer is:
A. Overstatement (occurrence/existence)
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Which of the following is an example of non-tax revenue?
A.
Royalties and fees for government services
B.
Income tax
C.
Sales tax
D.
Customs duty
Correct answer is:
A. Royalties and fees for government services
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The present value of Rs. 11,000 to be received after 1 year at a discount rate of 10% is:
A.
Rs. 10,000
B.
Rs. 9,900
C.
Rs. 12,100
D.
Rs. 11,000
Correct answer is:
A. Rs. 10,000
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Opportunity cost is:
A.
The cost already incurred in the past
B.
The cost of buying raw materials
C.
The total of fixed costs
D.
The benefit given up by choosing one alternative over the next best alternative
Correct answer is:
D. The benefit given up by choosing one alternative over the next best alternative
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