Answered: 1."A sale of Goods Contract once made…

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1."A sale of Goods Contract once made can never come to an end".Discuss the above statement with relevant examples.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 11GI

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4. An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract. True or False
A contract modification always results in a new contract if the modification adds distinct goods or services at a price that reflects their stand-alone selling price. A. True B. False
Which of the following arises when the seller's right to consideration from a customer is conditional upon something other than the passage of time? A receivable A contract asset A contract liability None of these choices
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
The contract of sale is a consensual contract. a. True b. False
How will you differentiate contract of sale from contract to sell?
TRUE or FALSE. A distinct good or service can be described as Not interrelated with other goods or services in the contract (T/F) Highly dependent on another service in a contract (T/F) Can be used on its own or in combination with other goods or services (T/F)
Does contract modification always result in a new contract if the modification adds distinct goods or services at a price that reflects their stand-alone selling price.
1. What is the difference between a spot and a forward rate? If the forward rate is not at parity during the outset of the contract, which theory of term structures does this violate?
1. If the forward rate is not at parity during the outset of the contract, which theory of term structures does this violate?
A contract does not qualify for revenue recognition if Either party can unilaterally cancel the contract before performance without compensating the other party. The contract is wholly unperformed. Contract terms allow cancellation without penalty by either party at any time prior to delivery of the goods. Any one of these choices apply.
Why is consignment not a sale?