Revenue Manager Interview Questions and Answers

The 5 steps model to recognize revenue involves identifying the contract, identifying performance obligations, determining the transaction price, allocating the transaction price, and recognizing revenue as performance obligations are satisfied.

• Identify the contract: Determine the existence of a contract with a customer.

• Identify performance obligations: Identify the promises to transfer goods or services to the customer.

• Determine the transaction price: Determine the amount of...read more

Intellectual property case of revenue recognition refers to the recognition of revenue from the sale of intellectual property.

• Revenue recognition for intellectual property can be complex and requires careful consideration of the terms of the agreement

• Revenue can be recognized at a point in time or over a period of time depending on the terms of the agreement

• Examples of intellectual property include patents, trademarks, copyrights, and trade secrets

• Revenue recognition for inte...read more

Accrual entry is a journal entry made to record revenue or expenses that have been earned or incurred, but have not yet been received or paid.

• Accrual entry is used to match revenue and expenses with the period in which they are earned or incurred, regardless of when the cash is actually received or paid.

• For example, if a company provides services in December but does not receive payment until January, an accrual entry would be made in December to recognize the revenue.

• Accrual...read more

Unearned revenue is a liability account that represents advance payments from customers for goods or services that have not yet been provided.

• Unearned revenue is recorded as a liability on the balance sheet until the goods or services are delivered.

• Once the goods or services are provided, the unearned revenue is recognized as revenue on the income statement.

• Examples of unearned revenue include magazine subscriptions paid in advance or prepaid rent for a lease agreement.

IFRS 15 is a revenue recognition standard that outlines principles for recognizing revenue from contracts with customers.

• IFRS 15 provides a single, comprehensive revenue recognition model for all contracts with customers.

• It requires entities to recognize revenue when control of goods or services is transferred to the customer.

• The standard also includes guidance on contract modifications, variable consideration, and performance obligations.

• IFRS 15 aims to improve comparability...read more

Expected CTC and experiences

• Expected CTC: Market competitive based on experience and skills

• Experiences: Over 5 years in revenue management, strong analytical skills, proven track record of increasing revenue

• Negotiation skills: Ability to negotiate contracts with clients to maximize revenue

• Budgeting experience: Creating and managing budgets to optimize revenue streams

ASC 606 outlines the steps for recognizing revenue from contracts with customers.

• Identify the contract with the customer

• Identify the performance obligations in the contract

• Determine the transaction price

• Allocate the transaction price to the performance obligations

• Recognize revenue when (or as) the entity satisfies a performance obligation