RecevableQuestion 2 of 18For trade receivables, the fair value is deemed equal to theSelect the correct response:O the amount due from the buyer without adjustment for any trade discounts allowedthe price in a binding sale agreementexchange price between a seller and a buyer after taking into account the amount of any trade discounts and volume rebates allowed by the entity.the quoted price of the receivable in an active market< Previous

trade receivable are considered to be asset of the business. receivable arises when sale is made by…

Answered: Question 2 of 18 For trade receivables,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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True or False Statemetn 1: If an item of PPE is acquired under a deferred settlement plan, it shall be measured initially at cash selling price. Statement 2: An item of PPE shall be measured at a price net of trade discount whether it is acquired on cash basis or on account basis INCLUDE REFRENCE FOR THE ANSWER
Question 9 of 18 Trade receivables are preferably presented on the face of the statement of financial position Select the correct response: as a separate line item distinguished from other receivables as part of current assets, included and undistinguished from other assets as part of one line item, included and undistinguished from other receivables as part of one line item but distinguished from other receivables ( Previous
Statement 1: Liabilities are present obligations that represent both legal and constructive obligations.Statement 2: All trade payables regardless of the expected timing of settlement are always classified as current. a.True, True b.False, false c.False, True d.True, False
Statement 1 : In accordance with IFRS 15, in accounting for customer premiums, the transaction price at the time of sale is recognized partly as revenue which is related to sale of goods and partly as a liability for the performance obligation to settle the transfer of the promised premium.Statement 2: In accounting for customer premiums in accordance with IFRS 15, there is a premium expense equivalent to the cost of premiums recognized upon redemption of these premiums. A.True, True B.True, False C.False, False D.False, True
24. Hire purchase agreement refers to A. an agreement between the lessee and the lessor for using a particular asset over a period of time against the periodic payments B. an agreement whereby a person hires goods for a period of time by paying installments and can own the goods at the end of the agreement if all installments are paid C. arrangement whereby one party sells goods to a second party with the promise to repurchase the goods at a future point in time D. an agreement whereby one party hires a particular asset for a set time period at a fixed monthly cost
38. In which of the following contracts may full payment of the price become the operative act that transfers ownership from the seller to the buyer? Group of answer choices Contract of sale Contract to sell Either a or b Neither a nor b
Q12 Which of the following is correct in a regular way purchase (or sale) of a financial asset? Select one or more: a. The trade date should always coincide with the settlement date. b. Settlement should be effected within seven workings days always c. Purchasing and selling of securities should be done according to the terms and conditions stipulated by the traders. d. The asset should be delivered within the time frame established generally by regulation or convention in the marketplace concerned.
Statement 1 : In accordance with IFRS 15, in accounting for customer premiums, the transaction price at the time of sale is recognized partly as revenue which is related to sale of goods and partly as a liability for the performance obligation to settle the transfer of the promised premium.Statement 2: In accounting for customer premiums in accordance with IFRS 15, there is a premium expense equivalent to the cost of premiums recognized upon redemption of these premiums. True, True True, False False, False False, True
15. The expense warranty accrual method a. violates the matching conceptb. requires recognition in the period of sale of the estimated warranty expense and warrantyliabilityc. separates accounting for two components of the sales price: the price of the product andthe price of the warrantyd. debits warranty costs to expense in the period when warranty expenditures are made
Description 1. A forward-based, exchange-traded agreement to make delivery of a specified quantity of a commodity during a specified time interval 2. The right to purchase an asset at an exercise price 3. The right to sell something at an exercise price 4. An agreement negotiated between two parties for the purchase and sale of a stated amount of a foreign currency with delivery at a stated future date 5. An exchange of fixed rate debt for variable rate debt Derivative
_____ is a contract that involves compensation for specific potential future losses in exchange for periodic payments and that provides for the transfer of the risk of a loss, from one entity to another, in exchange for a premium. a.Spot contract b.Insurance c.Hedging d. Forward contract
Under PFRS 15, what is the specific point in time when the consignor satisfies is performance obligation under consignment contract? a. upon sale of consigned goods by consignee to final consumers b. upon signing of contract of consignment by consignor and consignee c. upon remittance of cash by consignee to consignor d. upon delivery of consigned goods by consignor to consignee

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