In a destination contract for the sale of goods, which of the following is true concerning when the risk of loss passes: When a seller completes its delivery obligations When a buyer accepts conforming goods O When a seller complies with the perfect tender rule When a buyer covers after receiving non-conforming goods
Q: Which one of the following statements concerning forward contracts is true? Forward contracts are…
A: Forward contracts are a derivative instrument in which two parties enter in to an agreement to buy…
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: For PFRS 15 to apply, a contract with a customer should meet which of the following conditions? I.…
A: For PFRS 15 to apply, a contract with a customer should meet the following conditions : I. The…
Q: Required: State what are the presumed advantages of using forward exchange contracts. Calculate…
A: Data given::> Invoice amount = $130,000 Payment details: On shipment = $40,000 One month after…
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: 2. Mr. Ahmed sold an item, which is damaged prior to delivery for an intention from seller's…
A: Commerce is regarded as the process of transfer of goods or any services in terms of money or any…
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A: If sale price is greater than the fair value than the ROU asset should be recognised...
Q: Choose the correct. When negotiating a business acquisition, buyers sometimes agree to pay extra…
A: The correct answer is Option (c).
Q: Choose the right option All of the following statements are true about letters of intent except…
A: Letter of intent An agreement between two parties in which one party agrees to do business with the…
Q: When a contract includes an option to buy additional goods or services, when does that option give…
A: Contract: Contract is a written document that creates legal agreement between the parties for buying…
Q: Which of the following shipping terms would normally indicate that risk of loss and damage during…
A:
Q: consignor satisfies its performance obligation under consignment contract?
A: Consignment sales are sales made by the one person (consignee) on behalf of the other person…
Q: 1."A sale of Goods Contract once made can never come to an end".Discuss the above statement with…
A: Sale of goods contract involves 2 parties one is seller and other is buyer Seller sells the goods…
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: What is the difference between an Offer for a unilateral contract and an Offer for a bilateral…
A: In unilateral contracts, one party offering the deal promises to pay when a certain act or task is…
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: What type of intangible asset is the goodwill account? What does it mean to the purchaser if the…
A: Goodwill refers to the intangible asset that arises from the purchase of another company or…
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: A company should immediately recognize: A) any gain when it constructs a piece of equipment at a…
A: Matching principle: According to this principle, the expense should be recognized when it is…
Q: he Equipment Breakdown Protection Coverage Form insuring agreement under which the insurer agrees to…
A: Spoilage is waste or loss of raw material during production. It refers to badly damaged material in…
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: Discuss the difference between: A. Contract of Sale and Contract to Sell B. Sale by Sample, Sale by…
A: Contract of Sale and Contract to sell the contract of sale, the exchange of goods takes place…
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: Where goods are sold by a person who is not the owner thereof, and who does not sell them under the…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: Purchase commitments A. Are obligations of the company to acquire certain goods at a fixed price…
A: Purchase commitment means where we agree to buy particular goods at particular price in future what…
Q: When a contract contains more than one performance obligation, the seller allocates the transaction…
A: Contract: A contract is a legal agreement among two or several parties to perform some task and…
Q: (Based on Appendix 9) Define purchase commitments. What is the advantage(s) of these agreements to…
A:
Q: The major difference between future and option arises from the different obligations of buyers and…
A: The option and future are used to hedge investment as well as to make money and it represents the…
Q: Define purchase commitments. What is the advantage(s) of these agreements to buyers?
A: Purchase Commitments refer to the commitments or contract made by a company with its suppliers to…
Q: When does the delivery of goods happen in Salam Contract? 1- In the future 2-It is…
A: The contract of salaam requires all of the conditions of a normal sale contract except that it does…
Q: true or false ___________ if the fair value of the asset given u[ in exchange transaction that has…
A: Fair market value: It is the value of the fixed asset on which a particular asset is being sold in…
Q: How are sellers constrained from recognizing variable consideration, and under what circumstances…
A: The seller generally recognizes the amount of revenue which they believe will be received. In case…
Q: __ is a contract that involves compensation for specific potential future losses in exchange for…
A: Step 1 Currency swap forward contracts are frequently used by companies with international market…
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: Does contract modification always result in a new contract if the modification adds distinct goods…
A: The given situation can be linked with International Financial Reporting Standards (IFRS) 15 which…
Q: A contract to sell is the same as a conditional contract of sale. Do you agree? Explain your answer.
A: A contract to sell is a contract that is legally binding and involves the purchase of products or…
Q: on the advantages and/or criticisms of the two theories. according the economic theory of contract…
A: By banning involuntary appropriation, property law promotes people to get the most out of their…
Q: How will you differentiate contract of sale from contract to sell?
A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…
Q: A contract modification always results in a new contract if the modification adds distinct goods or…
A: The given scenario can be linked with International Financial Reporting Standards (IFRS) 15 which…
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: Barter occurs when there is no commonly accepted medium of exchange. Select one: True False
A:
Q: When should a transfer of receivables be recorded as a sale? A) The buyer surrenders controlof the…
A: Option (d) is the correct answer.
Q: contract purporting to
A: Statement I: In case of doubt, a contract purporting to be a sale with right of repurchase is…
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- Does contract modification always result in a new contract if the modification adds distinct goods or services at a price that reflects their stand-alone selling price.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 sale of Goods Contract once made can never come to an end".Discuss the above statement with relevant examples.
- Under the new revenue recognition guidance in ASC Topic 606, which of the following statements is true regarding contracts with customer options? In some cases where customers have an option to acquire additional goods or services, an evaluation is required to determine if the option creates an additional performance obligation. An additional performance obligation is created if the customer could obtain the same rights to additional goods or services without entering the contract. An additional performance obligation is created if the option provides the customer a right to purchase the goods or services at the stand-alone selling price for those goods or services. It is generally not considered a performance obligation when a retailer grants a "customer appreciation dividend" to a customer.Which of the following is true about forward contracts? a. The party that agrees to buy the asset is said to be in a short position. b. The party that agrees to sell the asset is said to be in a long position. c. The specified, fixed price in the contract is known as the forward rate. d. A forward contract requires an initial deposit of funds with the transacting broker.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.
- A contract does not qualify for revenue recognition if Either party can unilaterally cancel the contract before performance without compensating the other party. The contract is wholly unperformed. Contract terms allow cancellation without penalty by either party at any time prior to delivery of the goods. Any one of these choices apply.A contract to sell is the same as a conditional contract of sale. Do you agree? Explain your answer.Under PFRS 15, what is the specific point in time when the consignor satisfies its performance obligation under consignment contract? Upon remittance of cash by consignee to consignor. Upon delivery of consigned goods by consignor to consignee. Upon signing of contract of consignment by consignor and consignee. Upon sale of consigned goods by consignee to final consumers.
- 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 damagesIf a contract modification adds distinct goods or services and the contract price increases by an amount that reflects the stand-alone selling price of the added goods or services, then the contract modification should be accounted for By cumulative catch-up method. By prospective method. As a new separate contract. None of these choices.What are some of the missteps by the buyer and seller in negotiation? How could they avoid those missteps?