Page 503 - F2 Integrated Workbook STUDENT 2019
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Supplementary objective test questions
CHAPTER 7 – REVENUE FROM CONTRACTS WITH CUSTOMERS
7.1 XYZ Ltd publishes magazines on a monthly basis and sells them through
quarterly subscriptions to their readers. Subscribers pay for their subscription in
advance and receive their first magazine in the month following their first
payment.
Cash received from subscriptions in the final 4 months of 2014 were as follows:
September $780,000
October $850,000
November $800,000
December $830,000
What revenue should be recorded for the year ending 31st December 2014
in respect of these subscriptions?
A $1,613,334
B $2,430,000
C $2,440,000
D $3,260,000
7.2 Bumble Ltd sells recording equipment to studios and on 1 July 20X4 sold a
package of equipment for $650,000. This included $150,000 relating to
technical support to be provided over the next 3 years.
How much revenue is recognised in relation to this sale within the year
ended 31st March 20X5?
A $650,000
B $612,500
C $537,500
D $500,000
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