Exercise 3 - MCQ (20 points, 10 points each) 1. To address inconsistencies and weaknesses in revenue recognition, a comprehensive revenue recognition standard was developed entitled the a. Revenue Recognition Principle. b. Principle-based Revenue Accounting. c. Rules-based Revenue Accounting. d. Revenue from Contracts with Customers. 2. On January 15, 2018, Bella Vista Company enters into a contract to build custom equipment for ABC Carpet Company. The contract specified a delivery date of March 1. The equipment was not delivered until March 31. The contract required full payment of 75,000 30 days after delivery. The revenue for this contract should be a. recorded on January 15, 2018. b. recorded on March 1, 2018. c. recorded on March 31, 2018. d. recorded on April 30, 2018. Bonus question (5 points)rican College of the Middle East, 2020 TRUE OF FALSE 1. Revenue is recognized in the accounting period when the cash is received. 2. The first step in the revenue recognition process is to identify the contract(s) with customers. 3. Companies rarely have to allocate the transaction price to more than one. performance obligation in a contract. 4. A company can only satisfy its performance obligations over a period of time.