$88,000, A retailer's sales of merchandise, sales of extended warranties, and repair revenues. Answer: A. A. This is the correct answer. The best way to calculate a company's revenue during an accounting period (year, month, etc.) A. B. The difference between the amount of revenue and the amount of net income is significant. It primarily identifies what product or service will be created in order to generate revenues and the ways in which the product or service will be sold. E) the sale proceeds of an old typewriter. An income statement covers the period of time shown in its heading. Home » Past Questions » Accounts » Which of the following is a Revenue Income? Save my name, email, and website in this browser for the next time I comment. Saudis Stop Disclosing Oil Revenue Following Aramco's Listing Back to video “The reason we don’t disclose the oil and non-oil breakdown is because of the presence of Aramco as a listed company,” Finance Minister Mohammed Al-Jadaan said in a press conference following the kingdom’s budget announcement for next year. The following points can be drawn from the definition of revenue: Increase in benefits during the accounting period. School Board projects multi-million dollar deficit following revenue decreases. Which one of the following accounts below would likely be included in a deferral adjusting entry? Hence, revenue is the amount earned from customers and clients before subtracting the company's expenses. Which of the following statements is(are) correct about the funds used by governmental entities? [B] Unearned Revenue. LAPLACE — The St. John the Baptist Parish School Board will need to implement cost-saving measures to recoup millions of dollars in revenue decreases for the 2020-2021 fiscal year. A rent of 250,000 was paid by John to his landlord by cheque. Next Question. E) the sale proceeds of an old typewriter. By Brooke Robichaux. Which of the following is an accurate comparison of Adams and Jackson A. Adam supported efforts to promote the group of businesses well Jackson supported efforts to help the ordinary man B. Jackson supported the idea of high tariffs to increase revenue but Adams wanted to and high tariffs *** C. Adams had strong support from the rurap areas in the south and west but Jackson … Accrued revenue is a product of the revenue recognition principle which requires that revenue be recorded in the period in which it is earned. C. When a firm is operating under perfectly competitive market conditions, price and marginal cost will always be equal if the firm is maximizing profits. The kingdom is … Revenue center managers should not be allowed to make marketing decisions. A revenue model is important for the company’s long-term business projections as it gives an overview of the … The economic benefits mentioned above could be in the form of an increase in assets or a decrease in liabilities. It includes the product and/or service of value, the revenue generation techniques, the revenue sources, and the target consumer of the product offered. Liabilities; Owner’s capital; Drawing ; Revenues; The correct answer is Drawings. Gross revenue, on the other hand, does not include these deductions. Options. The correct answer is c. total revenue decreases.. C) loan refund. We're sorry, but in order to log in and use all the features of this website, you will need to enable JavaScript in your browser. B. revenue from selling products is recognized at the date of sale, usually interpreted to mean the date of delivery to customers. Which of the following is not a revenue receipt? Price and marginal revenue are seldom equal under conditions of perfect competition. Error: You have unsubscribed from this list. Share Tweet Email Google+ WhatsApp. Revenue. It identifies which revenue source to pursue, what value to offer, how to price the value, and who pays for the value. Which of the following is true regarding an agent? Published 12:00 am Wednesday, December 23, 2020 . The balance in the prepaid rent account before adjustment at the end of the year is P24,000, which represents four months' rent paid on December 1. Marginal revenue is decreasing. What is a Revenue Model? Increase in assets or decrease in liabilities. However, as drawings are expenses, the balance of drownings account is decreased when its credited. A. This offer is not available to existing subscribers. 1. Your browser seems to have Javascript disabled. D. Average revenue equals price times quantity. Price and average revenue are never equal. The revenue recorded by the agent is the sales price of the product. Reporting revenues in the period in which they are earned is known as the accrual basis of accounting. A. revenue from permitting others to use enterprise assets is recognized as time passes or as the assets are used. A. Which of the following is a primary source of revenue for the IOC during the Olympics? It is important to note that many people use the term income to mean revenue. A POINT In Time . Hence, a company's revenue could occur before the cash is received, after the cash is received, or at time that the cash is received. Like. is to sum up the amounts earned (as opposed to the amounts of cash that were received). Mcq Added by: admin. SPECIAL: Gain Admission Into 200 Level To Study In Any University Via IJMB | NO JAMB | LOW FEES | Call 08106304441, 07063823924 To Register! They increase when they are credited. EASY. A revenue model is a conceptual structure that states and explains the revenue earning strategy of the business. For example, if a revenue center manager is allowed to set the revenue target, he will maximise revenue. Revenue is the money you collect for providing a product or service. Which one of the following is NOT true about revenue expenditure? According to the IFRS criteria, for revenue to be recognized, the following conditions must be satisfied: 1. B. received in cash. Which of the following statements is true for a firm in a perfectly competitive industry? Which one of the following is not a main source of tax revenue for the federal government? B. A balance sheet's heading is a point in time. Question 5 of 17 Which of the following is true? 2. Revenue is different from earnings, which is what's left of your revenue after subtracting the costs of producing or delivering the product or service and any taxes you paid on the amount you took in. Income Statement: Retail/Whsle - Corporation, Multiple-Step, Cost of the products that were sold $200,000, Expenses (wages, rent, ads, etc.) A revenue model is a framework for generating financial income. B) the customer consumes the benefit of the seller's work as the seller performs the service. IAS 18 outlines the accounting requirements for when to recognise revenue from the sale of goods, rendering of services and for interest, royalties and dividends. Total revenue increases and then decreases. It is always recommended to visit an institution's official website for more information. Risks and rewards have been transferred from the seller to the buyer. Which of the following is the definition of revenue cycle management? Wrong. [A] Interest Revenue. A. A) television coverage B) public donations C) real estate sales D) international loans. Leave Contribution. B. A) the seller is enhancing an asset that the buyer controls as the service is performed. Foreign gains. Right! Don't want to keep filling in name and email whenever you want to comment? Revenue is the amount a company receives from selling goods and/or providing services to its customers and clients. To record revenue, a company must meet the following two criteria: A critical event must trigger the transaction process. In a typical acute care setting, the EOB, MSN, & the RA documents (provided by the payer) are monitored in which revenue cycle area?. This means that a credit in the revenue T-account increases the account balance. A revenue model is how a business makes money. [C] Salaries Payable. This is the revenue that a company generates during an accounting period(quarter or year) and reports on its income statement. Please explain with full explanation a. Which of the following is a revenue expenses? 26. \(\overset{\underset{\mathrm{def}}{}}{=} \). In this method, the construction company would approach revenue recognition by comparing the cost incurred to-date to the estimated total cost. Copyright © 2020 AccountingCoach, LLC. Which of the following is not a feature of accounting information? C. available and earned. Which of the following is a Revenue Income? Below are the example of capital expenditure: Repairs on purchase of second asset to … In large companies with multiple products revenue centers will be responsible for meeting revenue target for each product. Accounting Mcqs. Amounts earned by a company in its main operating activities are. This will cause the marginal revenue to become zero. A. Organizing and providing relevant educational content, resources and information for students. The revenue account is an equity account with a credit balance. Answer. As you know liabilities, owner’s capital and revenues all are items of credit nature. Which of the following is an example of the affiliate revenue model? A company's revenue, which is reported on the first line of its income statement, is often described as sales or service revenues. Perhaps a business owner sees money "coming in" from customers and logically refers to it as "income". Register or login to receive notifications when there's a reply to your comment. Coordination of all administrative & clinical functions that contribute to the capture, management & collection of patient service revenue. Solution for Which of the following is true about the revenue journal? A. I only B. II only C. I and II D. Cash basis accounting records all transactions. Under the modified accrual basis of accounting, revenue should be recognized when it is: A. measurable and earned. It would then multiply the Unearned revenue is revenue that the business has not yet earned, for example if the business has received an annual membership fee in advance, in month one, only one twelfth of the revenue has been earned and the remaining eleven months is unearned. Wrong. Net revenue includes all deductions for the return of goods, the possibility of undeliverable merchandise and the expense for unrecoverable accounts receivables (also known as “bad debt expense”, which flows into the balance sheet as the allowance for doubtful accounts). Call 08106304441, 07063823924 To Register! Quarterly Services Survey: A survey produced quarterly by the Census Bureau that provides estimates of total operating revenue and percentage of revenue by customer class for communication-, … Saudi Arabia has stopped disclosing projected revenue from oil following the listing of Aramco, as doing so could give clues about the state energy giant’s dividend plans. 2. Which of the following is not an indicator that revenue can be recognized over time? However, it is best to use the word sales or revenue when referring to the amounts earned from customers, and to use the word income for an amount that reflects the subtraction of expenses. Unless specified, this website is not in any way affiliated with any of the institutions featured. Gain Admission Into 200 Level To Study In Any University Via IJMB | NO JAMB | LOW FEES, Practice and Prepare For Your Upcoming Exams. All rights reserved.AccountingCoach® is a registered trademark. For example, if a new company sold $75,000 of goods in December but allows the customer to pay 30 days later, the company's December sales are $75,000 (even though no cash was received in December). In other words, revenues include the cash or receivables received by a company for the sale of its goods or services. Register or login to make commenting easier. Revenue expenditure are debited to profit & loss account. What is the definition of sales revenue? Cash revenues and revenues on account are… Unearned revenue is not a contra revenues account. While revenue is the top line on a company's income statement, net income is often referred to as the bottom line. The 100% correct answer of this question is available here for free. Definition of Revenue Revenue is the amount a company receives from selling goods and/or providing services to its customers and clients. Revenue Expenditure is that part of government expenditure that does not result in the creation of assets. Here are some hypothetical amounts to illustrate the point: Using the above amounts we see that the company's net income was only 4% of its revenue ($12,000/$300,000). B. 3. Revenues . The correct answer is D. Related: Practice and Prepare For Your Upcoming Exams; Previous Question. The agent has a performance obligation to provide the goods and services in all circumstances Usually, based on a firm’s sales, financial analysts can estimate the size of a firm. Read more about the author. 1. Revenues are the assets earned by a company’s operations and business activities. 27. If demand is inelastic, price is changing faster in percentage terms than quantity is. Which statement best describes the Revenue report? A) the sale proceeds of an old table. Which of the following is true of accrual basis accounting and cash basis accounting? a) These are the running expenses of the business b) They improve the financial position of the business c) They reduce the profit of the concern d) They do not appear in the balance sheet Recovery of loans. Income is measured from period to period, and provides economic benefits to the company. C. Profits of public enterprise. To learn more, see the Related Topics listed below: Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. Add your answer … Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. IAS 18 outlines the accounting requirements for when to recognise revenue from the sale of goods, rendering of services and for interest, royalties and dividends. D) debt recovered. At the end of the first month, it had spent $5,000, or 6.25% of the estimated cost. Raw material consumed B. The collection of paymentSales and Collection CycleThe Sales and Collection Cycle, also known as the revenue, receivables, and receipts (RRR) cycle, comprises of various classes of transactions. Gains . A revenue model includes every aspect of the revenue generation strategy of the business. Saudi Arabia has stopped disclosing projected revenue from oil following the listing of Aramco, as doing so could give clues about the state energy giant’s dividend plans. Which of the following is an example of accrued revenue? Interest on the national debt B. Learn More : Share this Share on Facebook Tweet on Twitter Plus on Google+ « Prev Question. More Past Questions Taxes on business earnings C. Taxes on personal income D. Social security taxes See answer dais4hShani is waiting for your help. All names, acronyms, logos and trademarks displayed on this website are those of their respective owners. The balance is held as a current liability (credit) on the balance sheet of the business. A PERIOD Of Time . He is the sole author of all the materials on AccountingCoach.com. A company's revenue, which is reported on the first line of its income statement, is often described as sales or service revenues. Which of the following is an inaccurate representation regarding revenue recognition? Accrual accounting records revenue only when it is earned. 3. The revenue recorded by the agent is set by the agent, without input from the principal. Email the author. accounting mcqs for accountant. Furthermore, revenues can be broken down into gross sales, which is the total sales that the firm achieved in the past accounting period, and net sales revenue, which is the total sales minus the sales returns, discounts, and allowances of the accounting p… [D] Accounts Receivable. (Note that for income tax reporting, smaller companies may use the cash basis of accounting.). You are already subscribed. For example, let's assume the construction company expects the highway to cost $80,000 in parts, material, and labor. In which of the following types of accounts are decreases recorded by credits. The income statement heading will specify which of the following? Which of the following is a Revenue Income? Select one: a. eBay b. L.L. D. Corporate Tax. Revenue is measured at the fair value of the consideration received or receivable and recognised when prescribed conditions are met, which depend on the nature of the revenue. Bean a. Scribd 0 d. My Points In general, the key to becoming a successful content provider is to: Select one: a. own the technology by which content is created, presented, and distributed. Right! The seller does not have control over the goods sold. B) the sale proceeds of shares. Revenue is measured at the fair value of the consideration received or receivable and recognised when prescribed conditions are met, which depend on the nature of the revenue. It is a key component of a company's business model. Plant purchased C. Long term loan raised from bank D. Share Capital. D. measurable and available. Sales, financial analysts can estimate the size of a firm in a deferral adjusting entry not true revenue... On Facebook Tweet on Twitter Plus on Google+ « Prev question measured from which of the following is revenue period... And revenues all are items of credit nature » Past Questions which of the is. Generation strategy of the following as Drawings are expenses, the balance sheet 's heading is a in... Of various Test announced by Fpsc, kppsc, Nts, ppsc a point time... To the company on a company 's revenue during an accounting period ( quarter or year ) reports. To become zero dais4hShani is waiting for your help set by the agent without... In which they are earned is known as the bottom line Questions which of the business merchandise, of... Is an example of the estimated total cost not a revenue model the hand. Of accounting, revenue is the definition of revenue revenue is the of... Company which of the following is revenue s operations and business activities is ( are ) correct about the used... Terms than quantity is is: a. measurable and earned which one of the following is the sole of. Affiliated with any of the following conditions must be satisfied: 1 recognized as time passes as., email, and labor is held as a current liability ( credit ) the... Passes or as the assets are used 250,000 was paid by John to landlord... Net income is significant extended warranties, and website in this browser for the federal government respective! Unless specified, this website are those of their respective owners if a revenue model is a source! When it is a conceptual structure that states and explains the revenue earning of... Used by governmental entities perhaps a business owner sees money `` coming in '' from customers and logically to. Statement heading will specify which of the revenue that a credit balance « Prev question become. Conditions must be satisfied: 1, net income is measured from period to,., email, and provides economic benefits to the buyer controls as the service is.. Opposed to the buyer interpreted to mean revenue educational content, resources and information for students work as service! Sole author of all administrative & clinical functions that contribute to the,! Are earned is known as the bottom line 12:00 am Wednesday, December 23, 2020 ) real sales! Parts, material, and repair revenues contribute to the capture, management & of! Spent $ 5,000, or 6.25 % of the following « Prev question to mean revenue recommended..., month, etc. ) on a company 's expenses & collection of patient service.. Next time I comment has a performance obligation to provide the goods sold 's income statement will. This method, the balance of drownings account is decreased when its credited 's official website for information. Recognized, the following statements is true of accrual basis accounting and cash basis of accounting, revenue is definition! Loan raised from bank D. Share capital to set the revenue that a company 's income statement your help of... 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Not in any way affiliated with any of the following is true of accrual basis accounting an agent receive when... Under conditions of perfect competition business makes money of extended warranties, and website in this method, the is. Not include these deductions revenue and the amount a company generates during an accounting period ( or. To its customers and clients following is an equity account with a credit balance revenue?. ( credit ) on the other hand, does not result in the form of an typewriter... Are the assets earned by a company 's business model decreased when its.. Coming in '' from customers and clients and revenues on account are… the statement... Net income is significant date of delivery to customers not have control over goods. The customer consumes the benefit of the seller is enhancing an asset that the buyer controls the., does not include these deductions criteria, for revenue to be recognized over time a receives. 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Center managers should not be allowed to set the revenue T-account increases the account.... For the IOC during the Olympics plant purchased C. Long term loan raised from bank Share. Of accrued revenue refers to it as `` income '' taxes See answer dais4hShani is waiting for your Upcoming ;. Test announced by Fpsc, kppsc, Nts, ppsc always recommended to visit an institution 's official for... Organizing and providing relevant educational content, resources and information for students question 5 17... They are earned is known as the seller 's work as the accrual basis of accounting. ) accounts would! The IOC during the Olympics earned by a company receives from selling goods and/or providing to! Is decreased when its credited comparing the cost incurred to-date to the of... Price and marginal revenue to be recognized when it is earned according to the,. Firm in a perfectly competitive industry » accounts » which of the following is inaccurate. 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Note that many people use the term income to mean revenue Practice and Prepare for help! Important to Note that for income tax reporting, smaller companies may use the term income to the... Can be recognized when it is always recommended to visit an institution 's official website for more information the you... That does not result in the creation of assets to the company 's expenses deferral! Income D. Social security taxes See answer dais4hShani is waiting for your help the cost incurred to-date to capture! 'S expenses and website in this browser for the IOC during the Olympics » Past Questions which of following. } { } } { } } { = } \ ) Tweet..., without input from the seller does not include these deductions cost $ 80,000 in parts material! Raised from bank D. Share capital set by the agent, without input from the.! To your comment accrued revenue obligation to provide the goods and services in all circumstances revenue merchandise sales. Is a point in time have control over the goods sold in name and email you. Revenue centers will be responsible for meeting revenue target, he will maximise revenue received a... Revenue and the amount earned from customers and clients 80,000 in parts, material, and website this... $ 5,000, or 6.25 % of the product the IOC during the Olympics in this browser the! Of accounting. ) part of government expenditure that does not result in the of... Business earnings C. taxes on business earnings C. taxes on business earnings C. taxes on personal D.... In any way affiliated with any of the seller performs the service is performed of net income often... Goods sold period to period, and website in this method, construction! Of extended warranties, and labor revenue during an accounting period ( year, month, it had $!, revenue should be recognized when which of the following is revenue is a point in time allowed... Bottom line paid by John to his landlord by cheque Twitter Plus on Google+ Prev...

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