Distinguish between the installment sales method and the cost recovery method of accounting for installmentsales.

Q: Compare and contrast how GAAP depreciation expense vs. MACRS depreciation deductions are computed.

A: GAAP : Generally Accepted Accounting principles. MACRS: Modified Accelerated Cost Recovery System.

Q: Describe the accounting procedures involved in applying the direct financing method by a lessor.

A: Direct financing lease or operational lease method meaning given below:

Q: Sometimes a temporary difference will produce future deductible amounts. Explain what is meant by…

A: The future deductible amount caused by temporary difference means that the taxable income can be…

Q: Explain how to account for the impairment of an available-for-sale debt investment.

A: Debt Investment:   A debt investment involves loaning out the money to an institution in exchange…

Q: Effective interest amortization method uses which of the following rates to determine interest…

A: Under the effective interest method, the interest is calculated as yield to maturity multiplied by…

Q: Under the installment sales method, a. Gross profit is deferred proportionately to cash uncollected…

A: Installment sales involves a transaction in which the payment of at least one of the loan payments…

Q: igures calculate the individual depreciation an

A: We need to compute tax shield on depreciation and interest on excel.

Q: compute the amount of the installments

A: The loan is the amount of money borrowed from a lender at a fixed rate of interest. the amount can…

Q: How does a company report deferred gross profit resulting from the use of the installment sales…

A: Definition:   Installment sales method: Under the installment sales, the revenue and costs are…

Q: Briefly differentiate between Sukuk and Bonds from asset ownership, investment criteria, issue price…

A: The question is based on the concept of investment in Sukuk and bond. Sukuk is consider as a special…

Q: What is the meaning of Installment Sales?

A: Installment sale: It is one of a few potential income acknowledgments approaches under the Generally…

Q: Define debtor-in-possession (DIP) financing

A: Introduction: A debtor in possession (DIP) is an individual or company that has filed for chapter 11…

Q: Determine whether the following statement is true or false, and explain why. A loan is amortized if…

A: Borrowing by an individual or a corporation is the method through which the individual and the…

Q: GAAP requires that debt issue costs be recorded separately and amortized over the term of the…

A:

Q: Describe the three different methods used to calculate the periodic depreciation allowances for…

A:

Q: How to record purchase of a  debt investment? Give an example.

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: hen assets that have been sold and accounted for by the installment method are subsequently…

A: Inventory is the current asset posted on the balance sheet of the company.

Q: ation of debt income from qualifi

A: The Qualified Principal Residence exclusion enables a taxpayer to deduct up to $2,000,000 of the…

Q: What are the reporting issues in a sale with a repurchase agreement?

A: Repurchase agreement: A form of short term borrowing for dealers in government securities is called…

Q: The equal depreciation method and the equal installment method are similar in terms of?? A- Amount…

A: Depreciation is the non-cash outlay which is charged on the non-fixed assets due to their regular…

Q: When intially recognizing the cash surrender value, what is the reason behind the allocation between…

A: Matching Principle Concept-:Matching precept is the accounting belief that compels that the…

Q: Describe the Depreciation Allowance under Inflation?

A: Depreciation: Depreciation is an accounting method to calculate the value of a tangible asset during…

Q: Computation and Calculation on how they get  - Interest Received  - Interest Income - Discount…

A: Bond Amortization - It is a principal paid regularly, along with its interest expenses over the life…

Q: Define installment Notes.

A: Installment note: Installment note is an obligation in which the defaulter needs to repay the…

Q: How do we record the interest payment (provide examples for both premium and discount amortization),…

A: Bonds are a form of debt or loan taken by the company, on which regular interest payments needs to…

Q: Which of the following ratios would be most useful in determining a company’s ability tocover its…

A: Fixed-charge coverage ratio (FCCR): The FCCR tests the capacity of a corporation to meet its fixed…

Q: Explain the classification issues of short-term debt expected to be refinanced.

A: Short term debt: It refers to the financial obligation for the firm that needs to be paid within one…

Q: Describe the Valuation of Installment Notes.

A: Installment notes can be defined as a promissory note for the payment of principal and interest…

Q: Loans and receivable should be measured subsequent to initial recognition at *   a. Amortized cost…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: It is a receivable financing activity where the Entire Receivable's ownership is sold to the Factee…

A: Generally company makes credit sales and suffer the bad debts on some of the credit sales. To over…

Q: Differentiate between the use of receivables in financing arrangements accountedfor as a secured…

A: Meaning of Financing with Receivable Financing receivable is refer as the arrangement in which…

Q: Explain an example how to record the purchase of debt investment.

A: When a debt investment is purchased , it is recorded as a asset in the books of the company as it is…

Q: When a company sells an asset and simultaneously leases it back, what criteria must be met to apply…

A: Sale-Leaseback approach:   In the sale-leaseback approach, the owner of the leased asset sells it…

Q: Describe the lessee's accounting for sale-leaseback transactions.

A: Meaning:

Q: What is a lump-sum purchase, and how is it accounted for?

A:

Q: Describe and demonstrate how the lessor accounts for a sales-type lease with a selling profit.

A: In a sales-type lease, the lessor is assumed to actually be selling a product to the lessee, which…

Q: Describe the key characteristics of a debt investment and demonstrate how to account for a purchase…

A: Debt Instrument:   A debt instrument is a financial instrument that enables the issuer of the…

Q: Explain the nature of lump-sum purchases including the factor(s) to be considered and the…

A:

Q: What is the nature of a sale on consignment?

A: Consignment is a business sale transaction between a consignor and a consignee. Under consignment…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.