Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Under the accrual basis of accounting, revenues are reported in the accounting period when the

a. Cash is received b. Service or goods have been delivered

user-image
Question added by Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed
Date Posted: 2014/05/04
Asad zaman
by Asad zaman , Audit/Finance , Rafaqat Baber and co

when risk and reward is transfer to customer.Goods delievery is one of the condition to recognise revenue according to IAS18.

Salah Alatta
by Salah Alatta , المدير المالى للمجموعة , شركة مجموعة جاكو للغازات

Option  B

Bobby Chaugule
by Bobby Chaugule , Finance Lead , Horizontal Integration Middle East FZE LLC

Answer is "b"

jabar Hussain
by jabar Hussain , Employee , Service Industries Limited Gujrat

b.goods or services have been delivered

Hassan Abbas Naqvi
by Hassan Abbas Naqvi , Accounts Manager , Pak Steel Re-Rolling Mills

B

Meh Engelbert Kum
by Meh Engelbert Kum , Revenue Assurance Manager , Vodacom Business Africa, Cameroon

B

Mohsin Abbas
by Mohsin Abbas , Finance Manager , Saudi Power Transformers Company& CG Power Systems

B

Ina Yvonne Silawan
by Ina Yvonne Silawan , Accountant , Blue Marin Management Consultancies

b. Service or goods have been delivered

Based on principle of recognizing when it occured regardless of when the cash was received.

Mohammad Ibrahim, CMA, CertIFR
by Mohammad Ibrahim, CMA, CertIFR , Accounting Operation Team Leader , KFH ( Kuwait Finance House )

Answer ( B ) - Service or goods have been delivered

Ilham Mohammed
by Ilham Mohammed , Senior Accountant , gulf center for foodstuff

B is correct 

Nadeem Aslam
by Nadeem Aslam , Senior Accountant , Central Bureau Recruitment Services (Part of OTI Group)

b is the correct answer. in accural concept receipt and payment of cash is irrelevent. occuuence of event is important

More Questions Like This