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NEW QUESTION: 1
On February 1, Year 1, a computer software firm agrees to program a software package.
Twelve payments of US $1 0.000 on the first of each month are to be made, with the first payment March 1, Year 1. The software is accepted by the client June 1, Year 2. How much Year 1 revenue should be recognized?
A. US $120.000
B. US $0
C. US $100.000
D. US $110.01,0
Answer: B
Explanation:
Recognition of an element of financial statements income, which includes revenue and gains) requires that two criteria be met. It must be probable that any future economic benefit associated with the item will flow to or from the entity, and the cost or value of the item must be measurable with reliability. The usual procedures for income recognition. e.g., that income be earned, reflect these criteria. Thus, income is recognized when an increase in future economic benefits is associated with an increase in an asset or a decrease in a liability. However, the entity has not substantially completed what it must do to be entitled to the benefits represented by the advance payment, and the receipt of future economic benefits is not sufficiently certain to merit income recognition.
Accordingly, a liability should be recognized because the entity has a current obligation arising from a past event that will require an outflow of economic benefits, that is, to deliver the software or to refund the customer's money. Thus, a liability for US $100,000 and revenue of US $0 should be recognized for Year I NOTE: This analysis assumes that the sale of the software is a sale either of goods or of services for which the appropriate conditions have not been met. Under IRS 18, Revenue Recognition, revenue is recognized for a sale of goods when the entity has transferred the significant risks and rewards of ownership, the entity has neither continuing managerial involvement to a extent associated with ownership nor effective control over the goods, the amount can be reliably measured, it is probable that the economic benefits will flow to the entity, and transaction costs can be reliably measured. For a sale of services, revenue is recognized when revenue can be reliably measured, it is probable that the economic benefits will flow to the entity, the stage of completion can be reliably measured, and the costs incurred and the costs to complete can be reliably measured.
NEW QUESTION: 2
The car maker Henry Ford who said that 'customers could have any colour car they wanted as long as it was black' was operating in a:
A. Segmented market.
B. None of the above.
C. Differentiated market.
D. Undifferentiated market.
Answer: D
NEW QUESTION: 3
What command would you use to ensure that backup records in the control file are pointing to actual physical files on the backup media?
A. confirm
B. resync
C. backup validate
D. list backup
E. crosscheck
Answer: E
Explanation:
Explanation/Reference:
Explanation:
Crosscheck
A check to determine whether files on disk or in the media management catalog correspond to the data in the RMAN repository. Because the media manager can mark tapes as expired or unusable, and because files can be deleted from disk or otherwise become corrupted, the RMAN repository can contain outdated information about backups. Run the CROSSCHECK command to perform a crosscheck.
The "control file" in the Qis acting as the RMAN repository if the RMAN use control file store metadata.
NEW QUESTION: 4
A. Option C
B. Option D
C. Option B
D. Option A
Answer: C
Explanation:
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