ACCT HW 3 Final

QUESTION 2 If a company sells its accounts receivables to a factor O a. there is a gain on the sale of the receivables. O b. the seller of the A/R pays a fee to the factor. O c. the factor pays a fee to the seller of the A/R. O d. the seller defers recognition of sales revenue until the account is collected by the factor.

3 d ut of ious page Registration for GST favours a business because - Select one: it increases revenue as customers pay more for the products and services O it makes the tax reports easier to prepare there are no advantages to registering for GST O it allows a business credits for the GST it pays for business-related expenses

11:/13 Problem 2-2U S) William Company operates a customer loyalty program. T entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchane for goods of the entity. The pointa have no expiry date. During 2020, the entity issued 100,000 award credits and expects that 80% of these award credits shall be redeemed The total stand-alone selling price of the award credita granted is reliably measured at P2,000,000. In 2020, the entity sold goods to customers for a total consideration of P8,000,000 based on stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be redeemed 2020 2021 30,000 15,000 80% 90% 1. What is the revenue from points for 2020? 1,600,000 b. a. 1.500,000 600,000 d. 480,000 2. What is the revenue from points for 2021? a. 240,000 b. 200,000 120,000 04.29

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m1. Subject Accounting

Question 1 A company observes that the value date for an electronic transfer payment to one of its suppliers for providing it with components, occurs 3 days earlier than if it issued a cheque for the same payment and value. So the company prefers to pay the supplier by cheque. When it realizes this, the supplier offers a discount to the company to incentivise it to pay by electronic transfer instead of by cheque. How much of a discount in percentage terms should the discount offered by the supplier be? Assume that an electronic payment cost is 0.5 percent higher than the cost of issuing a cheque and that the prevalent market discount rate is 5 percent. Also assume that there is float neutrality.

Read the following information to answer questions 2.1 - 2.2. LA Fashion has credit sales of $6,400,000 for the financial year ending June 30, 2021, and estimates at the end of the financial year that five per cent of accounts receivable will not be received. Accounts receivable total $3,100,000. The corporation uses the allowance method to account for bad debts, based on the percentage of receivables approach.

Which one of the following statements is true? Question 12Answer a. Fee income is the main source of revenue for financial institutions. b. Fee income is the revenue taken in by financial institutions from account-related charges to customers c. Interest income is non-taxable d. Interest expenses is the same as fee income.

Chapter 10 Discussion Sales tax: Remember that the customer is charged the sales tax and the company is responsible for sending the sales tax dollars to the appropriate government entity. The company has sales of $3,500 in cash and $4,400 on account. The sales tax rate is 6%. Make the journal entry to record the sales and sales tax     Installment notes: Remember that the monthly payment stays the same, but the amount of that payment that is interest continues to go down and the payment of the principal continues to go up. Assume that on January 1, the company borrows $50,000 from Chase Bank for 4 years at 5% interest. The installment payment is $1,200 every month. Calculate the interest amount and principal amount for the first and second months

13. Of the items and services offered by the fictional landscaping firm in Chapter 6, which would generally not be subject to a sales tax? a. design services b. fountains c. pumps d. outdoor chairs 14. When a transaction recorded in the Sales Receipt window includes sales tax, a default a. Sales Tax Payable; credited b. Sales Tax Receivable; credited account is C. Sales Tax Payable; debited d. Sales Tax Receivable; debited 15.In QuickBooks Online, the Sales Tax Center window is used to record the a. remittance of sales tax charged to customers to the proper tax agency. b. amount of sales tax owed by customers purchasing on account. C. amount of sales tax collected from customers during the current period. d. amount of sales tax collected from customers paying with cash.

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Question 31 Revenue are considered to have been earned when:     All possibility of return has expired.     The selling company has substantially accomplished what it contracted to perform and collection   from the customer is reasonably expected.     The cash is collected.     Goods have been shipped.

Intermediate Accounting 105 May I please have the solution to this exercise? Thank you

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Control over Cash Disbursements All cash disbursements should be made by check/debit card/credit card. 1. 2. Expenditures should be authorized before purchase and accuracy of purchase should be verified. The person who authorizes should not prepare the check. Use serial numbered checks. Only authorized person(s) should sign the check. Debit/Credit card statements should be checked against 3. 4. purchase receipts. The person verifying the statements should not be the person who made the purchases. Set limits on purchases for credit/debit cards. Separate the duties of the person responsible for making cash disbursements from the person in charge of cash receipts. 5. 6. Company Cash Receipts Recording revenue: the company always recognizes revenue at the agreed upon price. The amount of revenue recognized is not impacted by the way the customer pays for the good or service. Example: Tim purchases $100 of groceries from Publix. Below are two examples, one where Tim pays with either…

Question 19 Revenues are normally considered to have been earned when:     all possibility of return has expired     the company has substantially accomplished what it must to be entitled to the benefits     the cash is collected     goods have been shipped.

H2. Account

11 Motor Sales Inc. signs an instrument that promises to pay National Parts Company a certain price, with interest, for a shipment of auto parts. It is necessary to know when the instrument is due in order to   a. know when the interest will accrue.     b. all of the choices.     c. determine the value of the instrument.     d. calculate when a statute of limitations may apply. 12 To operate practically as a substitute for cash or a credit device, a negotiable instrument must be   a.  conditional without the risk of being collectable.     b.  qualified with a promise to set aside the qualification.     c.  payable without recourse.     d.  transferable without the danger of being uncollectable     Sport Souvenir LLC orders a gross of printed shirts from T-Shirt Company. To finance the purchase, the buyer signs a note to pay the seller from the funds paid to the buyer on the sale of the…

Question 3 An important inherent risk related to revenue transactions and revenue recognition:   A. Timing of recognition.   B. Executive incentive compensation.   C. Amount of the sale.   D. Tone at the Top.

Question attached to 2 sreenshots below thanks for the help greatly appreciated need it answerwd asap

How many of the following statements regarding the Revenue Recognition and Matching Principles are true? According to the Revenue Recognition Principle, a company should not record the revenue from a transaction until it is actually received in cash. If payment is received at the time a service is provided there is no difference between how cash and accrual accounting record the transaction. The Matching Principle requires that expenses be matched to the period in which they help to produce revenue. Group of answer choices A. None B. One C. Two D. Three