20 September 2014
Answer in 250 words:
1) Discuss contingent liabilities with examples. Where would these items feature in the financial statements of a firm ? What happens when bills are discounted by a firm ? Show journal entries for such transactions. (2012 Mains)
2) Discuss how the following streams of revenues are recognized in an IT service company :
a. Software services
b. Time and material contracts
c. Sale of user’s licenses.
