How do you think the miss statement of fines will impact the important statement and balance sheet.

Q: Define and explain the nature and concept of the current liability and non-current liability.…

A: Entity have two types of liability a short term liability and a long term liability . The difference…

Q: Briefly comment on the following questions or statements. a) Describe approaches to minimizing legal…

A: a) Legal liability refers to  a situation which is answerable or responsible in law. It covers both…

Q: Outline the measures used to describe possible loss accurately?

A: The success of a business depends on how accurately they predict future profit or loss arriving…

Q: what are the Benefits and Costs of Delinquency In the field of lending

A: Whenever a customer does not meet their obligation, a cost aries as the payment on the credit sales…

Q: In your own opinion, what would be the out come or consequences if a debtor failed to settle thier…

A: A debt default occurs when the borrower is unable to pay the money back to the lender at the time…

Q: What are the measures used to describe possible loss accurately?

A: Furthermore, you have the option of paying for your item in equal monthly instalments, guaranteeing…

Q: Why or what are the reason or reasons that would cause the trial balance to be considered as…

A: Trial Balance - After transferring all the transactions into Ledgers Company closes the accounts and…

Q: With regard to the correction of accounting errors, what is the difference between U.S. GAAP and…

A: Generally Accepted Accounting Principles:   GAAP (Generally Accepted Accounting Principles) is a…

Q: Explain the purpose of damages as a remedy for breach of contract in our law. Also explain how…

A: The purpose of contract remedies is, for the most part, to compensate the non-breaching party for…

Q: What is meant by a ‘statement of affairs’? How can the profit or loss of atrader be ascertained with…

A: What is meant by a ‘statement of affairs’?    It refers to a statement of assets and liabilities of…

Q: state the differences between unearned revenue and accounts payable? both accounts are liabilities…

A: Definition: Normal balance refers to the excess of the amount on one side, over the amount on the…

Q: When can a check be a negotiable instrument

A: In finance in general and in the world of banking, trade and commerce in particular checks and…

Q: What is/are the rule/rules (and the exceptions, if there be any) in case an object is lost or…

A: Fortuitous events refers to the happening of event through accident or chance. In short, it is a…

Q: The understatement of debt, whether due to error or fraud, is considered to be a major potential…

A: Understatement of debt: This occurs when an entity fails to completely disclose the debt it owes to…

Q: State the rules in case of the thing to be delivered is lost with the debtor's fault or without his…

A: When one party to a legally binding agreement fails to deliver according to the terms of the…

Q: Explain the methods of estimating bad debts ?

A: Bad Debt: A loan or outstanding sum that is no longer considered collectable and must be wiped off…

Q: What is the primary purpose of analyzing interest expense? Giventhis purpose, what primary…

A: Interest: Interest is the amount of interest paid on the issue price of the notes by the issuer at…

Q: Discuss the scope and penalties of Sarbanes Oxley Act.

A: The Sarbanes Oxley Act or the SOX was brought to force as a response to the substantial increase in…

Q: f the auditor want to assure that Receivables have not been sold. What assertion he or she want to…

A: Existence represents that whether accounts receivable of the company really exist on a particular…

Q: Discuss the possibility of substantial misstatement throughout the revenue and collection cycle,…

A: This question explains about  the revenue and collection cycle, with an emphasis on erroneous…

Q: Explain the difference between liquidated damages and penalities

A: Damage refers to the loss that results from some injury to a person, company, property, or…

Q: When is itpermissible to record bad debt expense only at the time when receivables actually prove…

A:

Q: measuring and recognizing impairment loss on receivables?

A: A is correct because the analysis of past experience gives the estimate of impairment loss on…

Q: Which statement is incorrect in the measurement of a provision? * a. The risks and uncertainties…

A: Provisions are made when there is ambiguity about the relative price of discharge of these…

Q: o methods of accounting for bad debts? Wh

A: 1.The direct write-off method 2. allowance method.   In the direct write-off method, an allowance…

Q: What are some of the ways to estimate bad debts?

A: There are 2 basic methods namely 1. Percentage of sales method 2. Percentage of receivable method…

Q: substantial misstatement throughout the revenue and collection cycle, with a particular emphasis on…

A: As per IFRS 15 revenue should be recognized as per the 5 step model as explained in the standard:…

Q: Required: Indicate your criticisms of the balance sheet and briefly explain the proper treatment of…

A: The balance sheet refers to the part of the financial statement that depicts the financial position…

Q: What are the requisites of notice of dishonor.? Explain.

A: Introduction:- A notice of dishonor is a legal notice tells or expressed that the bank will not…

Q: What is the approximate rate of delinquency, and is the rate of delinquency increasing or not?

A:

Q: Explain why the analysis of legal expense is an essential part ofevery audit.

A: Audit can be defined as the analysis and evaluation process conducted by the auditor who is…

Q: what are the legal aspects concerning bill discounting?discuss the decision analysis for factoring…

A: Bill Discounting is a business-related activity in which unpaid bills from a firm that are expected…

Q: Briefly comment on the following question or statement. (a) Describe approaches to minimizing legal…

A: Liability refers to as financial obligations in which the person or entity owes to another person or…

Q: How is the allowance method of accounting for bad debts different from the direct write-off method?…

A: Solution: Introduction: Allowance for Doubtful accounts is a contra asset, that it is related with…

Q: What does the FASB do in order to assess possible benefits and costs of a proposed revision of an…

A: Financial accounting standards board (FASB): This is the organization which creates, develops, and…

Q: What type of basis is it called when we report only the amounts actually collected and/or spent?

A: There are two methods of accounting. One is cash basis and other is accrual basis.

Q: Describe the allowance method used to estimate bad debts and the theoretical justification for its…

A: The allowance method involves a process that records an estimate of bad debts that are expected in…

Q: In your own opinion what would be the outcome or consequences if a debtor failed to settle thier…

A: A debt default happens when the borrower fails to pay the money back to the lender at the time when…

Q: Can a updated check be an negotiable instrument

A: Negotiable instrument refers to the instrument which guarantee the payment of particular amount that…

Q: Distinguish between suspension of payments and insolvency.

A: Suspension of payment Suspension of payment implies temporary financial problems by enabling him/her…

Q: Suppose the analysis of a loss contingency indicates that an obligation is not probable. What…

A: Contingent Liability  Contingent liability is one form of liability that arises based on a…

Q: What is proovision for bad debts

A: Bad debt means the amount due from debtor but it become bad i.e. it is not possible to recover the…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.