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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 $110.01,0
B. US $0
C. US $100.000
D. US $120.000
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
Section B (2 Mark)
Withholding Tax Rates for payments made to Non-Residents are determined by the Finance Act passed by the Parliament for various years. The current rates for Dividends are:
A. 0
B. 1
C. 2
D. 3
Answer: C
NEW QUESTION: 3
Which statement is true regarding the processAction lifecycle method?
A. It generates the HTML page for the portal.
B. It can handle an event that is published by another portlet.
C. It can publish an event by calling the setEvent method.
D. It generates the HTML fragment for the portlet
Answer: D
Explanation:
Portlets should not use tags that impact content generated by other portlets or that may
even break the entire portal page.
Inclusion of such a tag invalidates the whole markup fragment.
Portlets generating HTML fragments must not use the following tags: base, body, iframe,
frame, frameset, head, html, or title.
Portlets generating XHTML and XHTML-Basic fragments must not use the following tags:
base, body, iframe, head, html, or title.
NEW QUESTION: 4
Was wurde seit dem Vortag auf dem Webserver geändert?
A. Hat der Benutzer Zugriff auf die Anwendung?
B. Ist dies ein systemweites Problem oder nur ein Problem eines bestimmten Benutzers?
C. Ist die Anwendung online, auf die der Endbenutzer zugreifen kann?
Answer: C