If a customer agrees to retain merchandise that is defective because the seller is willing to reduce the selling price, this transaction is known as a sale: O a. Discount. O b. Allowance O . Return. O d. Contra asset
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A: Hi student Since there are multiple questions, we will answer only first question.
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Q: FOB shipping point
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Q: which statement is FALSE as it relates to a trade discount?
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- 51. Which of the following is the proper legal remedy to be availed by the buyer if the seller committed a breach of contract of sale of specific thing by non-delivery of the subject matter to the buyer? Group of answer choices File an action for specific performance or exact fulfilment plus damages File an action for reformation of instrument plus damages File an action for annulment of contract of sale plus damages File an action for declaration of nullity of contract of sale plus damages24) In which method of purchasing, company purchases material at lower price and sell them at higher price in future. a. Contract purchasing b. Co-operative purchasing c. Speculative purchasing d. Specific future period purchasingQuestion 63 Modified True or False T means Correct and F means Wrong I. The longer its customers normally hold inventory, the longer the credit period supplier firms normally offer. Still, suppliers have some flexibility in the credit terms they offer. If a supplier lengthens the credit period offered, this will shorten the customer's cash conversion cycle but lengthen the supplier firm's own CCC. II. The cash conversion cycle (CCC) combines three factors: The inventory conversion period, the receivables collection period, and the payables deferral period, and its purpose is to show how long a firm must finance its working capital. Other things held constant, the shorter the CCC, the more effective the firm's working capital management. III. The target cash balance is typically (and logically) set so that it does not need to be adjusted for either seasonal patterns or unanticipated random fluctuations. IV. A firm's peak borrowing needs will probably be overstated if it bases its…
- 1. From pages 5-1 and 5-2 of the VLN, which statement is FALSE as it relates to a trade discount? Group of answer choices A. It is a concept. B. The company provides a good or service at a reduced price. C. A contra revenue is recognized at the time of sale. D. It causes the sale to be recognized at the reduced, agreed upon price.1."A sale of Goods Contract once made can never come to an end".Discuss the above statement with relevant examples.( Appendix 5A) Under the gross method, the seller records discounts taken by the buyer a. at the time of sale. b. at the end of the period in question. c. never; discounts are irrelevant under the gross method. d. as a reduction to sales revenue.
- 4. An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract. True or False38. In which of the following contracts may full payment of the price become the operative act that transfers ownership from the seller to the buyer? Group of answer choices Contract of sale Contract to sell Either a or b Neither a nor bRequirement a. What are the accounting requirements for a correct sales cutoff? A. A shipment should be recorded as a sale when the risks of ownership transfer to the buyer and collectability is reasonably assured. B. A shipment should be recorded as a sale when the merchandise is shipped. C. A shipment should be recorded as a sale when the payment for the merchandise has beeb received by the seller. D. A shipment should be recorded as a sale when the merchandise is received by the purchaser.
- 1. From pages 5-1 and 5-2 of the VLN, which statement is FALSE as it relates to a trade discount? Group of answer choices A. It is a concept. B. The company provides a good or service at a reduced price. C. A contra revenue is recognized at the time of sale. D. It causes the sale to be recognized at the reduced, agreed upon price. 2. From pages 5-1 and 5-2 of the VLN, which of the following is FALSE as it relates to a sales discount? Group of answer choices A. It is an incentive to credit customers (customers who purchased on account) to encourage them to pay their invoice early. B. It is always recorded at the time of the sale. C. It is a contra revenue. D. It only applies to credit customers (customers who purchased on account). 3. From page 5-2 of the VLN, which of the following accounts are subtracted from sales to compute Net sales? Allowance for uncollectible accounts Deferred revenue Sales discounts Sales returns and allowances Accumulated depreciation Trade discount…True or False 12. Trade receivables arise from transactions not involving the purchase of inventory.19 - What is the payment method in which the goods are sent to the buyer without payment by the exporter company and the cost of the goods is paid within the predetermined term?A) Payment with Acceptance CreditB) Payment Against GoodsC) Pre-financing PaymentD) Policy PaymentE) Cash Against Documents