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PROBLEM 4-2: MULTIPLE CHOICE - THEORY 1. Which of the following is a non-exchange transaction? a. Leasing b. Collection of taxes c. Rendering of legal services d. Collection of tuition fees 2. Entity A enters into a long-term contract to provide services. The outcome of the transaction can be estimated reliably and the progress on the contract can be measured with sufficient reliability. According to the PPSAS, how should Entity A recognize revenue from the contract? a. On a straight line basis over the contract term. b. By reference to the stage of completion of the contract at the reporting date. c. Full recognition of contract price upon completion of the contract. d. Only to the extent of costs that are expected to be recovered. 3. According to the GAM for NGAS, interest revenue is recognized on a time proportion basis using the effective interest a. method.

PROBLEM 4-2: MULTIPLE CHOICE - THEORY 1. Which of the following is a non-exchange transaction? a. Leasing b. Collection of taxes c. Rendering of legal services d. Collection of tuition fees 2. Entity A enters into a long-term contract to provide services. The outcome of the transaction can be estimated reliably and the progress on the contract can be measured with sufficient reliability. According to the PPSAS, how should Entity A recognize revenue from the contract? a. On a straight line basis over the contract term. b. By reference to the stage of completion of the contract at the reporting date. c. Full recognition of contract price upon completion of the contract. d. Only to the extent of costs that are expected to be recovered. 3. According to the GAM for NGAS, interest revenue is recognized on a time proportion basis using the effective interest a. method.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please help me to answer 1-3. thank you

d. when the entity's right to receive payment is established. PROBLEM 4-2: MULTIPLE CHOICE - THEORY 1. Which of the following is a non-exchange transaction? a. Leasing b. Collection of taxes c. Rendering of legal services d. Collection of tuition fees 2. Entity A enters into a long-term contract to provide services. The outcome of the transaction can be estimated reliably and the progress on the contract can be measured with sufficient reliability. According to the PPSAS, how should Entity A recognize revenue from the contract? a. On a straight line basis over the contract term. b. By reference to the stage of completion of the contract at the reporting date. c. Full recognition of contract price upon completion of the contract. d. Only to the extent of costs that are expected to be recovered. 3. According to the GAM for NGAS, interest revenue is recognized a. on a time proportion basis using the effective interest method. b. on a straight line basis. in accordance with the substance of the relevant loạn C. agreement.
Transcribed Image Text:d. when the entity's right to receive payment is established. PROBLEM 4-2: MULTIPLE CHOICE - THEORY 1. Which of the following is a non-exchange transaction? a. Leasing b. Collection of taxes c. Rendering of legal services d. Collection of tuition fees 2. Entity A enters into a long-term contract to provide services. The outcome of the transaction can be estimated reliably and the progress on the contract can be measured with sufficient reliability. According to the PPSAS, how should Entity A recognize revenue from the contract? a. On a straight line basis over the contract term. b. By reference to the stage of completion of the contract at the reporting date. c. Full recognition of contract price upon completion of the contract. d. Only to the extent of costs that are expected to be recovered. 3. According to the GAM for NGAS, interest revenue is recognized a. on a time proportion basis using the effective interest method. b. on a straight line basis. in accordance with the substance of the relevant loạn C. agreement.
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