installment sale, revenue is recognized: a. at the point of sale b. after the point of sale c. before the point of sale d. all of the above
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In installment sale, revenue is recognized:
a. at the point of sale
b. after the point of sale
c. before the point of sale
d. all of the above
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- For assets acquired on credit or by installment, the cost or fair value is equal to: A. cash purchase priceB. invoice priceC. installment priceD. list priceWhen assets are purchased under an installment sales contract, the seller becomes the creditor. A. True B. FalseWhen assets that have been sold and accounted for by the installment method are subsequently repossessed and returned to incentory, they should be recorded on the books at a. net realizable value b. net realizable value minus normal profit c. the amount of the installment receivable less associated deferred gross profit d. selling price
- Distinguish between the installment sales method and the cost recovery method of accounting for installmentsales.When assets are purchased under an installment sales contract, the seller becomes the creditor. True or False?Under PFRS 15, what is the measurement basis of revenue from contracts with customers? Select the correct letter: A. Revocable amount of the consideration received or receivable B. Book value of the consideration received or receivable C. Fair value of the consideration received or receivable D. Historical cost of the consideration received or receivable
- Bond discount should be presented in the financial statements of the issue as a(n) Contra liability Contract asset Prepaid expense Deferred chargeDefine installment Notes.The equal depreciation method and the equal installment method are similar in terms of??A- Amount to be paid at the end of each periodb- Duration of one installmentC- Schedule of consumptionsD - the interest of the installment.
- Loans and receivable should be measured subsequent to initial recognition at * a. Amortized cost using the straight line method b. Fair value c. Fair value plus transaction cost d. Amortized cost using the effective interest methodBlanks are installment, finance, rate, and paymentWhen the amount of interest accrued shown in the adjustments, then it has to be: a. Deducted from discounts received on bills and shown in other liabilities b. Added to discounts received on bills and shown in other liabilities c. Added to discounts received on bills and shown in other assets d. Deducted from discounts on bills purchased and shown in fixed assets
