A contract does not qualify for revenue recognition if Either party can unilaterally cancel the contract before performance without compensating the other party. The contract is wholly unperformed. Contract terms allow cancellation without penalty by either party at any time prior to delivery of the goods. Any one of these choices apply.

Q: If a contract modification adds distinct goods or services and the contract price increases by an…

A: Any modification in the price or scope or both with regard to a contract by the parties to the…

Q: Based on the requirements and guidance of IFRS 15, one of the following is not considered part of…

A: Under the contract costing, there is an agreement made between two parties in respect of performing…

Q: What factors must any company consider before accepting a special-order contract?

A: Company has to consider following points while accepting special order: 1. Potential effect on sale…

Q: In a destination contract for the sale of goods, which of the following is true concerning when the…

A: A destination contract is a contract made for the sales of goods under which the seller promises to…

Q: In performing a contract of sale of goods, there may be a situation where the seller fails to…

A: A contract for the sale, sales contract, customer orders, or collective bargaining agreement for…

Q: It’s a contract whereby a person binds himself to render some service or to do something in…

A: Introduction: A contract is a legally enforceable agreement that creates, defines, and governs…

Q: When is an estimated loss on a long-term contract recognized, both for contracts that recognize…

A: Revenue recognized point of long term contract: A long-term contract qualifies for revenue…

Q: Why would the existence of conditions subsequent and precedent affect the discharge of a contract?

A: A contract is an agreement between more than one person to perform the duties mentioned in the…

Q: Revenue should be recognized over time when a performance obligation is satisfied over time. That…

A: Given statement is: Revenue should be recognized over time when a performance obligation is…

Q: Unconditional rights to receive consideration because a performance obligation has been satisfied…

A: Introduction:- Accounts receivable should be recorded when no extra performance commitments are…

Q: consignor satisfies its performance obligation under consignment contract?

A: Consignment sales are sales made by the one person (consignee) on behalf of the other person…

Q: Which of the following statements is not applicable to contract acquisition costs under ASC Topic…

A: In the given case all of the following statements is applicable to contract acquisition costs under…

Q: Forward contract is both a blessing and a curse because sometimes you feel that you should not have…

A: The contract between two parties (buyer or seller) in order to buy or sell the specific assets…

Q: Which of the following is not a mode of extinguishment of contract of sale? Group of answer choices…

A: The mode of extinguishment of contract of sale is::: Payment or performance of obligation..…

Q: True or False. An arbitration clause in a contract requires that any dispute concerning the contract…

A: The arbitration clause works in case of legal disputes between parties. It deals with the party's…

Q: Which of the following statements is true regarding contracts in ASC Topic 606 guidance for revenue…

A: As per ASC 606, A contract is an agreement between two or more parties that creates enforceable…

Q: Which statement is true when the outcome of construction contract cannot be estimated reliably?…

A: As per AS-7, the accounting treatment of construction contract with respect to recognition of…

Q: If the down payment is non-refundable, how much is the contract liability to be initially recorded?

A: Contract liability that is to be recorded initially can be calculated by adding the down payment…

Q: When a contract contains more than one performance obligation, the seller allocates the transaction…

A: Contract: A contract is a legal agreement among two or several parties to perform some task and…

Q: Under which of the following circumstances would a company need to consider whether products or…

A: Solution: When a revenue arrangement involves more than one performance obligation, company need to…

Q: Under PFRS 15, which of the following factors indicates that the revenue from contracts with…

A: Under IFRS 15  A performance obligation is on the seller or service provider who has an obligation…

Q: If the promise to grant a license is distinct and that the license provides the customer the “right…

A: Contract Account is a ledger created when a corporation enters into a long term agreement with the…

Q: Vicarious performance

A: The Vicarious performance represents the contractual obligation that is performed by a third party…

Q: what is the specific point in time when the consignor satisfies is performance obligation under…

A: Consignment represents the arrangement where the goods are sold to the buyer by a third party.

Q: Which of the following does not meet the definition O the signing of a cancellable contract for…

A: Solution: "The signing of a cancellable contract for purchase commitment" does not meet the…

Q: Which of the following is not a condition in the determination of when a valid contract exists: O…

A: In accordance with IFRS 15, a contract with a customer is said to exists only if the following…

Q: Under the new revenue recognition guidance in ASC Topic 606, which of the following statements is…

A: In accounting, ASC stands for Accounting Standards Codification as defined by the financial…

Q: Unconditional rights to receive consideration because a performance obligation has been satisfied…

A: Lets understand the meaning of term given. As per IFRS 15" Revenue from the contract with the…

Q: Under IFRS 15, when shall the incremental cost of obtaining a contract with a customer be recognized…

A: IFRS (International financial reporting standards) refer to a set of accounting guidelines and rules…

Q: Does contract modification always result in a new contract if the modification adds distinct goods…

A: The given situation can be linked with International Financial Reporting Standards (IFRS) 15 which…

Q: Under which of the following circumstance a contract does not exist   a-  The contract was not…

A: In order to make an agreement valid contract, the following conditions need to be fulfilled: There…

Q: Explain how to account for revenue on a long-term contract over time as opposed to at a point in…

A: The revenue recognition principle: The revenue recognition principle refers to the revenue that…

Q: Either party can choose to the contract in cases where both partiess to a contract are mistaken…

A: Mutual Mistakes is the result of an error by both parties about a material fact, i.e., one that is…

Q: TRUE or FALSE. A distinct good or service can be described as Not interrelated with other goods or…

A: Goods- Goods include things you can typically consume or possess, such as clothing, food,…

Q: Which of the following statements is not true regarding the treatment of warranties under the new…

A: ASC 606 provides guidance for accounting for revenue from customers.  Warranty is provided as a…

Q: Under PFRS 15, what is the measurement basis of revenue from contracts with customers? Select the…

A: Revenue recognizes steps: Identify the contract with a customer Identify the performance…

Q: following are causes of extinguishment of a contract of deposit EXCEPT:    a. Death of either party…

A: Solution: The following are causes of extinguishment of a contract of deposit EXCEPT "Loss or…

Q: A contract modification always results in a new contract if the modification adds distinct goods or…

A: The given scenario can be linked with International Financial Reporting Standards (IFRS) 15 which…

Q: An antenuptial contract must be notarially executed to be valid between the contracting parties.…

A: A contract entered into by a couple before their marriage, and restricting to retain their assets…

Q: Under PFRS 15, in which of the following instances will the revenue from contracts with customers be…

A: Revenue is the amount which has been earned by the company during the period from the core…

Q: If a contract modification does not create a separate contract, it is accounted for using either a…

A: The correct answer is “either a cumulative catch-up adjustment or a prospective approach”.

Q: Give the FIRST exception to the general rule that: If the consideration of the contract consists…

A: If the consideration of the contract consists partly in money and partly in another thing, the…

Q: . An entity has agreed to a three-year contract with a customer. Recognizing revenue from long-term…

A: As per IFRS15 Revenue recognition,  Revenue is to be recognized over a period of time if any one of…

Q: Under PFRS 15, when shall a consignor recognize revenue from its consignment sales? A When the…

A: SOLUTION- PERFORMANCE OBLIGATION  IS A PROMISE TO DELIVER THE GOODS OR SERVICES IN LIEU OF PAYMENT…

Q: . A contract of adhesion is a: A. take or leave it contract. B. charging above the maximum interest…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: In a "mixed contract," one involving both the dale of goods and services, does the UCC apply or does…

A: Contract is referred as the legal enforceable agreement, which defines, creates, and also governs…