1. S1: Maker Co, a manufacture and dealer of household appliances, agrees to indemnify a customer of any loss or damage that the customer may sustain from the use of purchase appliance. The contract to indemnify the customer in case of loss event is accounted for under PFRS 15. S2: Under insurance contract, the party that has a right to compensation if the insured event occurs is referred to as the policyholder. Only S1 is correct. Both statements are correct Only S2 is correct. Both statements are incorrect.
1. S1: Maker Co, a manufacture and dealer of household appliances, agrees to indemnify a customer of any loss or damage that the customer may sustain from the use of purchase appliance. The contract to indemnify the customer in case of loss event is accounted for under PFRS 15. S2: Under insurance contract, the party that has a right to compensation if the insured event occurs is referred to as the policyholder.
Only S1 is correct.
Both statements are correct
Only S2 is correct.
Both statements are incorrect.
2. It is the change in the relation of the partners caused by any partner being disassociated from the business.
Dissolution
Formation
Liquidation
Operations
3. If the promise to grant a license is distinct and that the license provides the customer the “right to access” the entity’s intellectual property, how is revenue recognized from the initial fee in the contract?
in full when the initial services to setup the contract are substantially performed
deferred and amortized over the license period
in full when the customer obtains and starts using the license
in full upon the signing of the contract
4. S1 – Under the installment sales method of recognizing gross profit on installment sales, revenue is realized based on collections; S2 – The installment sales method of recognizing gross profit on installment sales is consistent with the application of the matching process and net income is distorted for although the cost of installment sales and collection cost are matched against installment sales, it does not match the related expenses that are incurred in the period of sale.
Both statements are incorrect.
Only S2 is correct.
Both statements are correct.
Only S1 is correct.
5. S1: Reinsurance contracts issued that are assets shall be presented in the financial position separately. S2: Insurance contracts issued that are assets shall be presented in the financial position separately.
Only S2 is correct.
Both statements are correct
Only S1 is correct.
Both statements are incorrect.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
