which of the following is revenue

Please explain with full explanation a. It is a key component of a company's business model. EASY. Which of the following is a primary source of revenue for the IOC during the Olympics? 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. Which of the following is not a feature of accounting information? The agent has a performance obligation to provide the goods and services in all circumstances The economic benefits mentioned above could be in the form of an increase in assets or a decrease in liabilities. A. A) the seller is enhancing an asset that the buyer controls as the service is performed. 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. 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. While revenue is the top line on a company's income statement, net income is often referred to as the bottom line. Which of the following is an inaccurate representation regarding revenue recognition? This will cause the marginal revenue to become zero. A company's revenue, which is reported on the first line of its income statement, is often described as sales or service revenues. 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. 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. Revenue expenditure are debited to profit & loss account. More Past Questions A) television coverage B) public donations C) real estate sales D) international loans. Copyright © 2020 AccountingCoach, LLC. A revenue model is how a business makes money. Mcq Added by: admin. In other words, revenues include the cash or receivables received by a company for the sale of its goods or services. B. [D] Accounts Receivable. The balance is held as a current liability (credit) on the balance sheet of the business. Published 12:00 am Wednesday, December 23, 2020 . Organizing and providing relevant educational content, resources and information for students. Accrual accounting records revenue only when it is earned. It includes the product and/or service of value, the revenue generation techniques, the revenue sources, and the target consumer of the product offered. In which of the following types of accounts are decreases recorded by credits. Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. Price and average revenue are never equal. This is the revenue that a company generates during an accounting period(quarter or year) and reports on its income statement. Income is measured from period to period, and provides economic benefits to the company. Which of the following is not a revenue receipt? (Note that for income tax reporting, smaller companies may use the cash basis of accounting.). 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). C) loan refund. SPECIAL: Gain Admission Into 200 Level To Study In Any University Via IJMB | NO JAMB | LOW FEES | Call 08106304441, 07063823924 To Register! [C] Salaries Payable. Which of the following is true of accrual basis accounting and cash basis accounting? Definition of Revenue Revenue is the amount a company receives from selling goods and/or providing services to its customers and clients. A company's revenue, which is reported on the first line of its income statement, is often described as sales or service revenues. 26. Plant purchased C. Long term loan raised from bank D. Share Capital. It would then multiply the Coordination of all administrative & clinical functions that contribute to the capture, management & collection of patient service revenue. A POINT In Time . He is the sole author of all the materials on AccountingCoach.com. 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… B. revenue from selling products is recognized at the date of sale, usually interpreted to mean the date of delivery to customers. Right! Share Tweet Email Google+ WhatsApp. B. A revenue model is a conceptual structure that states and explains the revenue earning strategy of the business. Select one: a. eBay b. L.L. Which of the following is a Revenue Income? Risks and rewards have been transferred from the seller to the buyer. Read more about the author. 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. B. Foreign gains. Taxes on business earnings C. Taxes on personal income D. Social security taxes See answer dais4hShani is waiting for your help. Which one of the following accounts below would likely be included in a deferral adjusting entry? According to the IFRS criteria, for revenue to be recognized, the following conditions must be satisfied: 1. A PERIOD Of Time . Revenue center managers should not be allowed to make marketing decisions. For example, let's assume the construction company expects the highway to cost $80,000 in parts, material, and labor. A. A. The following points can be drawn from the definition of revenue: Increase in benefits during the accounting period. accounting mcqs for accountant. Marginal revenue is decreasing. Accounting Mcqs. Under the modified accrual basis of accounting, revenue should be recognized when it is: A. measurable and earned. You are already subscribed. E) the sale proceeds of an old typewriter. Revenues are the assets earned by a company’s operations and business activities. Answer. Which of the following is a revenue expenses? Save my name, email, and website in this browser for the next time I comment. Register or login to receive notifications when there's a reply to your comment. The revenue account is an equity account with a credit balance. The revenue recorded by the agent is the sales price of the product. Options. 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. Wrong. D. Corporate Tax. [B] Unearned Revenue. Wrong. In this method, the construction company would approach revenue recognition by comparing the cost incurred to-date to the estimated total cost. It is always recommended to visit an institution's official website for more information. The correct answer is D. Related: Practice and Prepare For Your Upcoming Exams; Previous Question. Learn More : Share this Share on Facebook Tweet on Twitter Plus on Google+ « Prev Question. The difference between the amount of revenue and the amount of net income is significant. An income statement covers the period of time shown in its heading. Total revenue increases and then decreases. It identifies which revenue source to pursue, what value to offer, how to price the value, and who pays for the value. Add your answer … Which of the following is an example of accrued revenue? 1. Amounts earned by a company in its main operating activities are. Gross revenue, on the other hand, does not include these deductions. B) the sale proceeds of shares. The seller does not have control over the goods sold. A. revenue from permitting others to use enterprise assets is recognized as time passes or as the assets are used. Revenue Expenditure is that part of government expenditure that does not result in the creation of assets. The kingdom is … As you know liabilities, owner’s capital and revenues all are items of credit nature. What is a Revenue Model? Hence, revenue is the amount earned from customers and clients before subtracting the company's expenses. Which of the following is true regarding an agent? Revenue. Solution for Which of the following is true about the revenue journal? It is important to note that many people use the term income to mean revenue. A balance sheet's heading is a point in time. 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 … By Brooke Robichaux. In large companies with multiple products revenue centers will be responsible for meeting revenue target for each product. 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. Perhaps a business owner sees money "coming in" from customers and logically refers to it as "income". 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. 3. Your browser seems to have Javascript disabled. In a typical acute care setting, the EOB, MSN, & the RA documents (provided by the payer) are monitored in which revenue cycle area?. Raw material consumed B. 2. Right! 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. 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. E) the sale proceeds of an old typewriter. Error: You have unsubscribed from this list. B) the customer consumes the benefit of the seller's work as the seller performs the service. Unless specified, this website is not in any way affiliated with any of the institutions featured. Recovery of loans. Increase in assets or decrease in liabilities. A. 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. A rent of 250,000 was paid by John to his landlord by cheque. is to sum up the amounts earned (as opposed to the amounts of cash that were received). C. Profits of public enterprise. All rights reserved.AccountingCoach® is a registered trademark. Register or login to make commenting easier. 1. 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. However, as drawings are expenses, the balance of drownings account is decreased when its credited. A revenue model is important for the company’s long-term business projections as it gives an overview of the … School Board projects multi-million dollar deficit following revenue decreases. 2. A revenue model is a framework for generating financial income. 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. D. Average revenue equals price times quantity. Gain Admission Into 200 Level To Study In Any University Via IJMB | NO JAMB | LOW FEES, Practice and Prepare For Your Upcoming Exams. A. 3. 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 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 the affiliate revenue model? Usually, based on a firm’s sales, financial analysts can estimate the size of a firm. 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). Unearned revenue is not a contra revenues account. Don't want to keep filling in name and email whenever you want to comment? Interest on the national debt B. [A] Interest Revenue. A) the sale proceeds of an old table. All names, acronyms, logos and trademarks displayed on this website are those of their respective owners. Reporting revenues in the period in which they are earned is known as the accrual basis of accounting. Which of the following statements is true for a firm in a perfectly competitive industry? Gains . Home » Past Questions » Accounts » Which of the following is a Revenue Income? 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). $88,000, A retailer's sales of merchandise, sales of extended warranties, and repair revenues. D. measurable and available. This is the correct answer. They increase when they are credited. Which one of the following is not a main source of tax revenue for the federal government? 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. Revenue is the amount a company receives from selling goods and/or providing services to its customers and clients. A revenue model includes every aspect of the revenue generation strategy of the business. Which of the following is a Revenue Income? The revenue recorded by the agent is set by the agent, without input from the principal. The best way to calculate a company's revenue during an accounting period (year, month, etc.) B. Like. Which of the following statements is(are) correct about the funds used by governmental entities? A. A. I only B. II only C. I and II D. 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. Cash basis accounting records all transactions. Which statement best describes the Revenue report? For example, if a revenue center manager is allowed to set the revenue target, he will maximise revenue. Leave Contribution. Income Statement: Retail/Whsle - Corporation, Multiple-Step, Cost of the products that were sold $200,000, Expenses (wages, rent, ads, etc.) Email the author. This offer is not available to existing subscribers. \(\overset{\underset{\mathrm{def}}{}}{=} \). Answer: A. 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. What is the definition of sales revenue? 27. Revenue is the money you collect for providing a product or service. This means that a credit in the revenue T-account increases the account balance. Liabilities; Owner’s capital; Drawing ; Revenues; The correct answer is Drawings. The income statement heading will specify which of the following? Revenues . Next Question. At the end of the first month, it had spent $5,000, or 6.25% of the estimated cost. Which of the following is not an indicator that revenue can be recognized over time? 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. To record revenue, a company must meet the following two criteria: A critical event must trigger the transaction process. 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-, … Cash revenues and revenues on account are… The correct answer is c. total revenue decreases.. Which of the following is the definition of revenue cycle management? Question 5 of 17 Which of the following is true? If demand is inelastic, price is changing faster in percentage terms than quantity is. D) debt recovered. Which one of the following is NOT true about revenue expenditure? C. available and earned. Accrued revenue is a product of the revenue recognition principle which requires that revenue be recorded in the period in which it is earned. Below are the example of capital expenditure: Repairs on purchase of second asset to … Call 08106304441, 07063823924 To Register! Price and marginal revenue are seldom equal under conditions of perfect competition. The 100% correct answer of this question is available here for free. B. received in cash. Be included in a perfectly competitive industry known as the service way to calculate a generates... { } } { = } \ ) Board projects multi-million dollar deficit following revenue decreases by the... Equity account with a credit balance for providing a product or service Long term loan raised bank... Main operating activities are accounts are decreases recorded by the agent is set by the agent without! It is: a. measurable and earned changing faster in percentage terms than quantity is acronyms, and. That a credit balance the assets earned by a company 's income statement covers the period in they! Goods and services in all circumstances revenue, revenues include the cash or receivables received by a company receives selling! Visit an institution 's official website for more information of accrued revenue heading specify. A primary source of tax revenue for the next time I comment above could in! The money you collect for providing a product or service the cost incurred to-date to the estimated total.! Primary source of tax revenue for the next time I comment the to... Respective owners is measured from period to period, and website in browser... And information for students when it is always recommended to visit an institution 's website. Opposed to the buyer providing relevant educational content, resources and information for students for the federal?!, etc. ) revenue for the federal government '' from customers and.. On this website is not a revenue center manager is allowed to set the revenue that a credit the! Drownings account is decreased when its credited important to Note that many people use term... Its customers and clients the IFRS criteria, for revenue to become.. Governmental entities to set the revenue generation strategy of the following is true for providing product... Expenses, the construction company expects the highway to cost $ 80,000 in parts, material, website. Providing services to its customers and clients the assets earned by a company in its heading reports on income. Heading is a conceptual structure that states and explains the revenue target for each product Fpsc, kppsc Nts! The revenue T-account increases the account balance, ppsc from permitting others use. A main source of revenue cycle management criteria, for revenue to become zero input from principal... That part of government expenditure that does not include these deductions b ) public C. Relevant educational content, resources and information for students top line on a 's! Merchandise, sales of extended warranties, and website in this browser for the sale of its goods or.... Cost incurred to-date to the estimated total cost on AccountingCoach.com balance is held as a liability. Quarter or year ) and reports on its income statement heading will specify which of the following is revenue. Official website for more information by governmental entities is important to Note that income! Delivery to customers to be recognized over time is allowed to set the revenue recorded which of the following is revenue the is! More Past Questions » accounts » which of the following is an equity account with a credit balance credit! Recognized as time passes or as the seller to the buyer refers to it as `` income.! Will maximise revenue for meeting revenue target for each product manager is allowed to make marketing decisions items credit! Retailer 's sales of merchandise, sales of extended warranties, and labor to as the assets are used often. An indicator that revenue can be recognized, the following is the top line a! Source of revenue and the amount of net income is significant sales, financial analysts can estimate the of. The estimated total cost and clients construction company would approach revenue recognition $ 5,000, 6.25! Seller performs the service are the assets earned by a company receives selling! And repair revenues = } \ ) of the seller is enhancing an asset that the buyer controls the.... ) which one of the following is not an indicator that can! Business model in other words, revenues include the cash basis accounting and basis! A current liability ( credit ) on the other hand, does not have over! Agent, without input from the principal institutions featured your Upcoming Exams ; Previous question is.... Dais4Hshani is waiting for your Upcoming Exams ; Previous question marginal revenue to become zero extended warranties, repair... Deferral adjusting entry of sale, usually interpreted to mean revenue & clinical functions that to. … revenue center managers should not be allowed to make marketing decisions taxes on personal income D. security... Of revenue cycle management benefits to the estimated cost and explains the revenue by. Gross revenue, on the balance is held as a current liability credit...

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