Elaborate further on the settlement of a future contract based on the numbers in the diagram. (1) (2) Cocoa Warehouse receipt Cocoa Farmer (short) (3) w. receipt Payment (4) Exchange Designated Warehouse Exchange (Clearing-house) Cocoa Warehouse receipt (3) w. receipt Payment (4) (5) (6) Confectioner (Long)
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- Under PFRS 15, what is the specific point in time when the consignor satisfies is performance obligation under consignment contract? a. upon sale of consigned goods by consignee to final consumers b. upon signing of contract of consignment by consignor and consignee c. upon remittance of cash by consignee to consignor d. upon delivery of consigned goods by consignor to consigneeRevenue is recognized for sold consignment goods when a. The consignee receives the goods b. When the consignment contract has been agreed upon c. The goods are sold by the consignee to the final customers d. When the consignment contract has been signed by both partiesWhich of the following is classified as current non-trade receivabke? A. Advances to affiliates B. Supplier's debit balances C. Accounts receivable D. Customers's credit balance
- According to U.S. GAAP, when should revenue be recognized?a. When cash is received from the customerb. When the service is performed or the goods have been delivered to the customerc. When the goods or services have been priced and offered for saled. At the stated date in the contractBased on the relationship and agreement with the vendors, what are the 2 vendor workflow options to pay your vendors?-Bill > Pay Bills-Invoice > Receive Payment > Create Deposit-Create Purchase Order-Expense or Check-Delayed Charge > Pay BillsUnder the realization principle, revenue from sale of products is recognized a. At date of delivery to the customers C. When the customers are billed b. When the inventories are readied for shipment D. Upon receipt of cash payment
- Which of the following situations may give rise to unearned revenue? Select one: a. Providing trade credit to customers. b. Selling inventory. c. Providing manufacturer warranties. d. Selling magazine subscriptions.The first step in the revenue recognition process is determining if a contract is in place between the seller and the customer. A contract is an agreement between two or more parties that creates enforceable rights and obligations. The standard states that a contract may be written, oral, or implied by customary business practices. To be a contract, the accounting standard states that it must meet five criteria. Required: Discuss the criteria necessary for a contract to be considered under the revenue recognition process. How would a company account for a contract that does not meet the criteria?When does the delivery of goods happen in Salam Contract? 1- In the future 2-It is flexible, depending on the agreement between buyer and seller 3-On the spot 4-Delivery happens when the payment is paid in full
- Which of the following functions is not included in the typical expenditure cycle involving goods? A. Disbursing payments to the vendors B. Placing an order for goods or services C. Posting to the accounts payable subsidiary ledger D. Processing a credit memo E. Ascertaining the validity of payment obligationsExplain the trade credit facility provided by some companies to their customers that allow them to manage their day-to-day liquidity situation and calculate the opportunity cost of an invoice that specifies the following conditions, as shown below (a. – c.):a) conditions: 1.25/10, n/30.b) conditions: 1.25/10, n/60.c) conditions: 1.5/10, n/60.3 In accounting for consignment sales, sales revenue and the related cost of goods sold should be recognized by the Group of answer choices Consignor when the goods are shipped to the consignee Consignee when cash is received from the customer Consignor when notification is received that the consignee has sold the goods Consignor when the goods are shipped to the third party