ACCT 3007 CHAPTER 6 SB PRACTICE
EXAM 2026 QUESTIONS AND ANSWERS
CERTIFICATION EVALUATION SET
●● The _ price is the amount the seller expects to be entitled to receive
from the customer in exchange for providing goods and services.
Answer: transaction
●● Which of the following conditions will cause revenue to be
recognized over time?.
Answer: - Customer consumes the benefit of the seller's work as it is
performed
- Seller creates an asset that has no alternative use, and the seller has the
right to receive payment for progress to date.
- Customer controls the asset as it is created
●● For the purpose of allocating the transaction price to multiple
performance obligations, if a stand-alone selling price cannot be directly
observed, the seller should.
Answer: estimate it.
, ●● Which of the following best describes an output-based estimate of
progress toward completion?.
Answer: The proportion of goods or services transferred to date.
●● Revenue is recognized when _ the obligation is satisfied..
Answer: performance
●● The concept or principle that states that companies should recognize
revenue when goods or services are transferred to customers for the
amount the company expects to be entitled to receive in exchange for
goods and services is referred to as the:.
Answer: Core revenue recognition principle
●● Which of the following agreements may qualify as contracts?
voidable agreements
written documents
oral agreements
implicit agreements.
Answer: - written documents
- oral agreements
- implicit agreements
EXAM 2026 QUESTIONS AND ANSWERS
CERTIFICATION EVALUATION SET
●● The _ price is the amount the seller expects to be entitled to receive
from the customer in exchange for providing goods and services.
Answer: transaction
●● Which of the following conditions will cause revenue to be
recognized over time?.
Answer: - Customer consumes the benefit of the seller's work as it is
performed
- Seller creates an asset that has no alternative use, and the seller has the
right to receive payment for progress to date.
- Customer controls the asset as it is created
●● For the purpose of allocating the transaction price to multiple
performance obligations, if a stand-alone selling price cannot be directly
observed, the seller should.
Answer: estimate it.
, ●● Which of the following best describes an output-based estimate of
progress toward completion?.
Answer: The proportion of goods or services transferred to date.
●● Revenue is recognized when _ the obligation is satisfied..
Answer: performance
●● The concept or principle that states that companies should recognize
revenue when goods or services are transferred to customers for the
amount the company expects to be entitled to receive in exchange for
goods and services is referred to as the:.
Answer: Core revenue recognition principle
●● Which of the following agreements may qualify as contracts?
voidable agreements
written documents
oral agreements
implicit agreements.
Answer: - written documents
- oral agreements
- implicit agreements
