tatement is INCORRECT, explain why the
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TRUE OR FALSE. If the statement is INCORRECT, explain why the statement is INCORRECT.
1. Under CIF, the seller agrees to pay in lump sum or installment, the cost of the goods, insurance and freight charges.
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- Statement I. In the case of premiums as a component of transaction price, cash received from customer during the redemption of premiums shall be accounted as deduction from the cost of premiums.Statement II. The transaction price for the sale of the product with premium is recorded as a liability for the performance obligation that will be settled by the transfer of the promised premium. A. Both statements are true. B. Both statements are false. C. statement I is true; Statement II is false. D. Statement I is false; Statement II is true.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, TrueStatement 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
- When assets are purchased under an installment sales contract, the seller becomes the creditor. A. True B. FalseAn encumbrance represents the estimated future liabilities for goods or services resulting from placing a purchase order or signing a contract. a. True b. FalseWhich one among the following conditions is NOT a condition of Murabaha: - Payment may be made by buyer during construction in installments. lump sum at delivery. or deferred either with a lump sum payment or in installments - The mark-up or profit will be stated and agreed by buyer and cannot be changed later - All the conditions are conditions of Murabaha. - Cost of goods or services including any direct or indirect costs (packaging. transportation. delivery. installation, are revealed to buyer
- Is it true that, when one firm sells to another on credit, the seller records the transaction as an account receivable while the buyer records it as an account payable and that, disregarding discounts, the receivable typically exceeds the payable by the amount of profit on the sale?Which of the following accounts is an example of a contra-asset?A) Cost of Goods Sold B)Sales Discounts C) Purchases D) Deferred Revenue E) LIFO ReserveGross selling price includes: I. the amount of the seller's debt assumed by the buyer. II. the fair market value of services received by the seller from the buyer. Oa, Only statement II is correct. Ob. Only statement I is correct. Oc. Both statements are correct. Od. None of these statements are correct.
- 4. An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract. True or FalseThe practice of recording advance payments from customers as a liability is an example of applying the O Going concern assumption. O Monetary unit assumption. O Historical cost principle. Revenue recognition principle.Blossom Company includes 1 coupon in each box of soap powder that it packs, and 5 coupons are redeemable for a premium (a kitchen utensil). In 2020, Blossom Company purchased 8,000 premiums at 50 cents each for cash and sold 58,500 boxes of soap powder at $3.50 per box for cash; 21,250 coupons were presented for redemption in 2020. It is estimated that 60% of the coupons will eventually be presented for redemption. Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2020. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation (To record the premium inventory) Debit Credit