1. Under ASC Topic 606 for revenue recognition, which of the following factors is not an indicator of the principal/agent determination?

Multiple Choice

• Inventory risk.

• Control of prices of the goods or services.

• Shipping terms.

• Credit risk.

2. Which of the following statements is not true regarding revenue recognition regarding gift cards?

Multiple Choice

• It is typical that a portion of gift card sales will go unused by customers.

• The amount received from the sale of gift cards is required to be recognized as revenue when the gift cards are sold.

• "Breakage" can only be recognized as revenue to the extent that it is probable a reversal will not be necessary.

• "Breakage" refers to the unused portion of gift card balances.

Answer rating: 100% (QA)

ANSWER Question 1 C is the correct answer Shipping terms At the most basic level revenue reco... View the full answer