An encumbrance represents the estimated future liabilities for goods or services resulting from placing a purchase order or signing a contract. a. True b. False
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- Receivables are amounts due from others that arise from the sale of goods or services. Select one: True False_____ 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 contractTypically, the estimated amount available for short-term payments in a statement of affairs (financial statement) a.Carrying amount b.Current fair value c.Zero d.Net realizable value
- The 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.A contingent liability: Is always of a specific amount O Is a potential obligation that depends on a future event arising out of a past transaction or event O Is an obligation not requiring future payment O Is an obligation arising from the purchase of goods or services on credit O Is an obligation arising from a future eventWhen assets are purchased under an installment sales contract, the seller becomes the creditor. A. True B. False
- Q:How is accidental loss of goods treated in final account in case: a: Goods had not been insured or Goods have been insured and the insurance company has claims associated with it.Accounts receivable can be classified as _____ a. A Expense. b. A Liability. c. A Capital d. An AssetWhich of the following is classified as nonmonetary? a. Cash surrender value b. Long-term receivable c. Accrued liability on firm purchase commitment d. Inventory
- 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 consigneeA seller recognizes the amount of returns from right to return sales as a/an ________. Group of answer choices expense revenue asset liabilityWhich of the following is classified as monetary? a. Goodwill b. Equipment c. Patent d. Allowance for doubtful accounts