Revenue from sale of goods is recognized when: MCQ with Answer and Explanation

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Revenue from sale of goods is recognized when:

A. Risks and rewards are transferred to the buyer

B. Order is received

C. Cash is received

D. Production is completed

Answer: Option A

Solution (By JKSSB Mock Tests)

As per AS 9 (Revenue Recognition), revenue from sale of goods is recognized when significant risks and rewards of ownership are transferred.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

Input Tax Credit under GST is available only if:

A. Payment is made in cash

B. Goods are purchased from unregistered dealer

C. Goods are exempted

D. The supplier has uploaded the invoice in GSTR-1 and it appears in GSTR-2B

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Correct Answer: Option D

Explanation:
ITC can be claimed only if the invoice details are reflected in the recipient's GSTR-2B.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

The rule 'Debit the receiver, Credit the giver' applies to:

A. Nominal accounts

B. Personal accounts

C. All accounts

D. Real accounts

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Correct Answer: Option B

Explanation:
This rule is for personal accounts.

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Question #3

Capital expenditure is recorded in:

A. Manufacturing Account

B. Profit & Loss Account

C. Balance Sheet

D. Trading Account

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Correct Answer: Option C

Explanation:
Capital expenditure results in acquisition of assets, shown on the asset side of Balance Sheet.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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