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

Q: Under an accrual accounting system, an expense is recognized when O A. a good or service is used or…

A: Accrual accounting system: Accrual accounting system means recording income and expense when…

Q: Which of the following statements regarding contracts is incorrect?a. Identifying the contract with…

A: Definition: Earnings: The bottom line of income statement which is the result of excess of earnings…

Q: A present obligation that is probable and for which the amount can be reliably estimated should…

A: The estimated expenses are the expenses which can be valued on the basis of past experiences or…

Q: d. Trade receivables, current assets (after deducting the related allowance) b. Trade receivables,…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: Receivables are amounts due from others that arise from the sale of goods or services. Select one:…

A: Accounts receivables represents the amount due to firm for the goods or services sold on credit.…

Q: In performing a contract of sale of goods, there may be a situation where the seller fails to…

A: A contract for the sale, sales contract, customer orders, or collective bargaining agreement for…

Q: Determine if this shall result in recognition of liabilities   4. Receipt of goods ordered from a…

A: The goods purchased on account increases the inventory and also increase the liability.

Q: What is difference between accounting for a long-term contract and accounting for a more normal sale…

A: Sale Revenue is recognized when the goods are actually dispatched and delivered to the customer. In…

Q: All of the following accounts are impliedly contained in the account "Construction in Progress”…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Gross selling price includes: I. the amount of the seller's debt assumed by the buyer. II. the fair…

A: Selling price means the rate at which the goods are sold or services are provided by the…

Q: When is an estimated loss on a long-term contract recognized, both for contracts that recognize…

A: Revenue recognized point of long term contract: A long-term contract qualifies for revenue…

Q: 2. Which is a valid statement regarding recognition of liabilities? * a. A non-interest bearing note…

A: Liability means the amount which is to be paid to an outsider by business.  It is the present…

Q: consignor satisfies its performance obligation under consignment contract?

A: Consignment sales are sales made by the one person (consignee) on behalf of the other person…

Q: Which of the following best describes Accrued Liabilities?a. Long-term liabilities.b. Current…

A: Accrued liabilities are also known as outstanding liabilities. It means those liabilities which are…

Q: Which one of the following statements is false? a. FOB shipping point means the buyer has legal…

A: FOB shipping point means title of the goods is transferred when goods are placed at the shipping…

Q: tatement is INCORRECT, explain why the

A: Cost, insurance, and freight (CIF): It is an international agreement in shipment that shows the…

Q: If deposit for lease contract was recorded as Rent Expense,

A: Rent deposit is the deposit made by the tenant to the landlord. Rent deposit will be held by the…

Q: A contingent liability: O Is always of a specific amount Is a potential obligation that depends on a…

A: Solution: A contingent liability is a liability that may occur depending on the outcome of an…

Q: 1. The significant risk that is transferred from the policyholder to the issuer of an insurance…

A: ‘’Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Determine whether the statement is legally correct (true) or not (false).   1. Conditions, interest,…

A: Sale represents that the seller would sell the goods or provide service in order to ear something in…

Q: The account, Discount on Notes Payable, is a a.contra-asset. b.deferred charge. c.liability.…

A: Discount on notes payable -  It is the amount payable by the concerned investor is less than the…

Q: is a practice of transfering the ownership of a negotiable instrument such as a check by a payee to…

A: Discounting means where the negotiable instrument has been given to bank before due date to take…

Q: 1. Which of the following is an essential characteristic for an obligation to qualify as a…

A: Note:We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Would a change from Completed Contract to Percentage of Completion be a change in accounting…

A: Change in accounting principle means that change in how financial information is calculated, while…

Q: When assets are purchased under an installment sales contract, the seller becomes the creditor. A.…

A: An asset is the value of items owned by the business organisation. It can be tangible or intangible…

Q: what is the specific point in time when the consignor satisfies is performance obligation under…

A: Consignment represents the arrangement where the goods are sold to the buyer by a third party.

Q: Determine if this shall result in recognition of liabilities 9. receipt of goods to be sold for the…

A: Consignment Goods: In the case of consigned goods, the party in actual possession of them do not own…

Q: The term FOB shipping point means that the ownership of the goods is vested on the buyer upon…

A: Free on Board(FOB) means that the buyer will get ownership of the goods that they have purchased…

Q: Statement 1 : In accordance with IFRS 15, in accounting for customer premiums, the transaction price…

A: IFRS 15 is an accounting standard for recognition of revenue from contracts with customers. The…

Q: A credit balance to a client's accounts payable account representing right to receive payment for…

A:

Q: During a period of deflation in which liability account balance remains constant, which of the…

A: Monetary items refers to those assets and liabilities whose value can be measured and expressed in…

Q: Statement I. If the pattern of the repairs cannot be established and the obligation for warranty…

A:

Q: The practice of recording advance payments from customers as a liability is an example of applying…

A: Under the Cash Basis of Accounting, revenue is considered only when the actual amount is received…

Q: In accounting for revenue recognition under ASC Topic 606, revenue can be recognized before a…

A: Solution: In accounting for revenue recognition under ASC Topic 606, revenue can be recognized…

Q: In the following liabilities, the payee is known, however, the amount may have to be estimated.…

A: provision should be created for all the certain liabilities

Q: How is accidental loss of goods treated in final account in case: a: Goods had not been insured or…

A: Accidental loss:   It is a loss incurred by a sudden or unexpected incident to the company. Accident…

Q: Advances from customers are classified as a(n) a. b. C. d. Select one: a. current asset. b. current…

A: Advance is the money which is given by one party (customer) in advance to the other party (other…

Q: Which of the following assets would not be included as a quick asset? a.Merchandise inventory b.Cash…

A: We first need to understand the meaning of quick asset. Quick assets are the assets which is…

Q: ment of supplier’s account is debited to accounts receivable. What is the effect of the error in…

A: Supplier account is an account payables account classified under current liabilities .Accounts…

Q: Which document typically triggers the process of recording a liability? a. purchase requisition b.…

A: Liability: It can be defined as the obligation that arises as a result of past events of the…

Q: If an asset account is credited, it indicates O An error. O An increase in the asset. O A decrease…

A: Increase in liabilities should be credited and decrease in liabilities should be debited.

Q: d. when the entity's right to receive payment is established. 2. Entity A enters into a long-term…

A: ●2.Entity A enters into a long-term contract to provide services. The outcome of the transaction can…

Q: The payment of supplier’s account is debited to accounts receivable. What is the effect of the error…

A: The Account Receivables are assets for the firm and Account Payables are liability for the firm. The…

Q: Allowance for doubtful accounts is an example of a. Asset account b. Expense account c. Contra asset…

A: solution:- Introduction:- Allowance for doubtful accounts means as follows under:- Allowance for…