contract purporting to
Q: Statement I: In cases wherein the net free assets are greater than the unsecured claims, the…
A: Liquidation means where the company decide to close out the operations , sell all the assets and…
Q: If a contract modification adds distinct goods or services and the contract price increases by an…
A: Any modification in the price or scope or both with regard to a contract by the parties to the…
Q: Asnwer true or false In a sale and leaseback transaction that qualifies as a sale under PFRS 16,…
A: "Since you have asked multiple questions, we will be solving the first question for you. If you want…
Q: Which Statements are TRUE regarding laws on obligations and contracts? 1. Freedom to contract means…
A: Laws on obligations and contracts come under the purview of Civil Law Legal System. These laws…
Q: First Statement: If the words of the contract are clear and leave no doubt on the intention of the…
A: Contract is made between the parties so that there will be no confusion left to either the parties…
Q: Give the SECOND exception to the general rule that: If the consideration of the contract consists…
A: If the consideration of the contract consists partly in money, and partly in another thing, the…
Q: As a general rule, one of the elements needed to make an agreement binding is consideration. True…
A: Consideration: A promisee gives a promisor something in exchange for it. Real or personal property,…
Q: In a destination contract for the sale of goods, which of the following is true concerning when the…
A: A destination contract is a contract made for the sales of goods under which the seller promises to…
Q: The fair value of a liability is defined as: a. the appraised value of the liability. b. the price…
A: The fair value of a liability is defined as the amount that would be paid when transferring a…
Q: Which among the sentences below is incorrect? A. An entity shall measure a current asset or…
A: Fair value A fair value means the actual price of an asset received if it is sold in the market. In…
Q: 38. In which of the following contracts may full payment of the price become the operative act that…
A: The contracts upon the full payment of the price become the operative act that transfers ownership…
Q: Which of the following statements regarding assignments are true? A. Buying a share in a loan…
A: Loan assignment involves assigning the rights of the loan agreement to a new lender.
Q: First statement. The drawer’s liability is secondary. Second statement. The instrument becomes…
A: Financial Instruments: A financial instrument is defined as a contract between individuals/parties…
Q: Which of the following statements is not applicable to contract acquisition costs under ASC Topic…
A: In the given case all of the following statements is applicable to contract acquisition costs under…
Q: xplicitly identified in the contract, it means that: a. the identified asset is never mentioned in…
A: When the asset is implicitly identified, this means asset is implied but is not directly expressed.…
Q: One of the following statements is false: a. If the underlying asset will not revert to the…
A: A lease is a contract which provides the right to use an asset for consideration for a specified…
Q: A negotiable instrument can be indorsed by way of a restrictive indorsement, which prohibits further…
A: Bill of exchange: A Bill of exchange is a writing document that contains the information to confirm…
Q: True or False. An arbitration clause in a contract requires that any dispute concerning the contract…
A: The arbitration clause works in case of legal disputes between parties. It deals with the party's…
Q: Which of the following statements is true regarding contracts in ASC Topic 606 guidance for revenue…
A: As per ASC 606, A contract is an agreement between two or more parties that creates enforceable…
Q: Which statement is correct regarding derecognition of financial assets? A. Transfer of risks and…
A: The process of derecognizing financial assets in which the entity fully transfers the asset and all…
Q: What is the effect of loss of the thing or object in a contract of sale?
A: What is the Sale of contract: It is the legal contract between seller and buyer to sale the goods at…
Q: Question 2 of 18 For trade receivables, the fair value is deemed equal to the Select the correct…
A: trade receivable are considered to be asset of the business. receivable arises when sale is made by…
Q: Which of the following is true about forward contract expiration? a.A deliverable forward contract…
A: On the date of expiration of a forward contract, settlement can be made on delivery basis or on cash…
Q: A company should record an asset called "Goodwill" when it purchases another company for an amount…
A: Goodwill is one of the intangible assets.
Q: The contract of sale is a consensual contract. a. True b. False
A: Sales on Account A sales on account revenue is revenue earned by a company by selling its goods on…
Q: What is the difference between a covenant not to compete in a contract versus a covenant not to…
A: Covenant A covenant is a formal legal agreement between two parties for doing or not doing some…
Q: Under PFRS 15, which of the following factors indicates that the revenue from contracts with…
A: Under IFRS 15 A performance obligation is on the seller or service provider who has an obligation…
Q: In the final settlement, of the contingent consideration, which of the following statements is…
A: I. If the contingent consideration is classified as equity, the amount shall be measured upon…
Q: seller agrees or obliges
A: TRUE defines a contract of sale as a contract whereby one in all the catching parties obligates…
Q: When a lessor actually sells an asset that it has been leasing, the difference between the sales…
A: Lease is an agreement in which one person gives to another person his asset to use for a specific…
Q: 1. Which of the following is the proper legal remedy to be availed by the buyer if the seller…
A: The following is the proper legal remedy to be availed by the buyer if the seller committed a breach…
Q: Under the new revenue recognition guidance in ASC Topic 606, which of the following statements is…
A: In accounting, ASC stands for Accounting Standards Codification as defined by the financial…
Q: Either party can choose to the contract in cases where both partiess to a contract are mistaken…
A: Mutual Mistakes is the result of an error by both parties about a material fact, i.e., one that is…
Q: When the required balance of the loss allowance decreases, a. the entity recognizes gain. b. the…
A: As per IFRS 9, a loss Allowance is made for the expected losses on any asset. It reduces the…
Q: Determine whether the statement is legally correct (true) or not (false). 1. The sale of an…
A: The seller would not be able sell a property that is not individually possessed by the seller. If…
Q: PROBLEM 2: MULTIPLE CHOICE - THEORY commits to sell a financial asset on Day 1. The sale is An…
A: Trade Date Accounting:- It is accounting that helps in recording the transactions on the date on…
Q: In the final settlement, of the contingent consideration, which of the following statements is…
A: I. Contingent consideration classified as equity the amount shall be measured upon settlement and…
Q: The contract in which the buyer has the right but not an obligation to buy or sell and underlying…
A: Option contract refers to the contract in which buyer or seller is having right but not an…
Q: 24. One of the following statements is false: * a. If the underlying asset will not revert to the…
A: In accordance with IFRS 16, a lease is contract that provides the right to use an asset for a…
Q: Under PFRS 15, in which of the following instances will the revenue from contracts with customers be…
A: Revenue is the amount which has been earned by the company during the period from the core…
Q: The proper remedy for the following cases is reformation of the instrument, except for one. Which is…
A: Reformation can be defined as the remedy by means of which a written instrument is rectified or…
Q: Give the FIRST exception to the general rule that: If the consideration of the contract consists…
A: If the consideration of the contract consists partly in money and partly in another thing, the…
Q: The market flex provision in an underwriting/syndication agreement means that the underwriter/lead…
A: The provisions which give the underwriter or the syndicate or the arrangers some amount of the…
Q: If an entity recognises the revenue associated with a contract with a customer over time (rather…
A: The question pertains to which of the two scenarios would be a more conservative approach : 1.…
Q: . A contract of adhesion is a: A. take or leave it contract. B. charging above the maximum interest…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 87. The seller in an auction sale employed a by-bidder or pupper who bid in behalf of the seller for…
A: If the seller makes use of pretended bidding to raise the price, the sale is voidable at the option…
Step by step
Solved in 2 steps
- T/F 1. In conventional redemption, the creditors of the vendor may make use of the right of redemption against the vendee although they have not exhausted the properties of the vendor. In case of doubt, a contract purporting to be a sale with a right to repurchase shall be construed as an equitable mortgage. For an assignment of credit to be binding against third persons if a movable property is involved, the same must be in a public instrument and recorded in the Registry of Property. A debtor who has paid his creditor before he learns of the assignment of his debt shall be released from his liability to the assignee. The debtor's consent is required for the validity of the assignment of the credit made by his creditor to another person.92. Which of the following is not a mode of extinguishment of contract of sale? Group of answer choices a. Redemption, whether legal redemption or conventional redemption b. Fulfilment of suspensive condition on sale of a determinate thing whose acquisition of ownership by the seller depends upon a contingency c. Resale of the goods by the unpaid seller d. Cancellation of sale of personal property in instalments by the seller in case the buyer defaulted in at least two instalmentstrue or false ___________ if the fair value of the asset given u[ in exchange transaction that has a commercial substance is not realibly determinable, the asset receive is measured at its fair value, adjusted for any cash received or paid in the exchange. _________ If a party in an exchange transaction recognizes gain, this presupposes a loss on the part of other contracting party _________ PPE acquired by issuing securities are always recognized at the fair value of the securities issued. ___________ A PPE from donation is initially recognized at the fair value of the asset given up
- Determine whether the statement is legally correct (true) or not (false). 1. An offer is subject to the complete will of the offeror and may be withdrawn or destroyed prior to its acceptance. 2. Actual delivery and payment is needed to establish existence of valid contract of sale.True or false 1. In a contract to sell what the seller agrees or obliges himself to do is to fulfill his promise to sell the subject property when the entire amount of the purchase price is delivered to him.When should a transfer of receivables be recorded as a sale? A) The buyer surrenders controlof the receivables to the seller. B) The transferor maintains effective control over the transferred assets through an agreement to repurchase or redeeem them prior to their maturity. C) The transferee cannot pledge or exchange the transferred assets. D) The transferred asstes are isolated from the transferor.
- Which of the following statements is true regarding contracts in ASC Topic 606 guidance for revenue recognition? Contracts need to be legally enforceable to be considered under ASC Topic 606. Contracts need to be in written form to be considered under ASC Topic 606. No consideration can be received before a contract exists. No price concessions can be made to an existing contract.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 choices1. A contract of adhesion is a: A. take or leave it contract. B. charging above the maximum interest rate allowed. C. equally at fault. 2. A judicially decreed incompetent will enter into a void/voidable/valid contract. A. Void B. Voidable C. Valid 3. A sales contract has an implied condition precedent/condition concurrent/condition subsequent. A. condition precedent B. condition concurrent C. condition subsequent
- Which of the following statements is not applicable to contract acquisition costs under ASC Topic 606 guidance for revenue recognition? Incremental costs of acquiring a contract must be capitalized and amortized over the life of the contract. Costs that would be incurred regardless of whether a contract is obtained are not capitalized. The capitalization requirement is subject to a practical expedient. Costs must be capitalized even if the amortization period is one year or less.One of the following statements is false: a. If the underlying asset will not revert to the lessor, the residual value is simply ignored by the lessor in the computation of unearned interest income and gross profit on the sale. b. The underlying asset will remain with the lessee if the lease provides for either a purchase option that is reasonably to be exercised or transfer of title to the lessee upon the lease expiration. c. When a lessor actually sells an asset that it has been leasing, the difference between the sales price and the carrying amount of the lease receivable is recognized in profit or loss. d. The gain or loss that pertains to the right retained by the seller-lessee in a sales and leaseback transaction is not recognized.True or False According to PFRS 15, if an entity expects that a portion of giftcertificates sold will not be redeemed, the entity recognizes theexpected breakage amount as revenue in proportion to the pattern of rights exercised by customer
