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Markets require a physical location to permit sellers to supply money to buyers for goods and services. O True O False
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- Which of the following is not a characteristic of FOB Shipping Point? A. The buyer pays for shipping. B. The buyer owns goods in transit. C. The point of transfer is when the goods leave the sellers place of business. D. The point of transfer is when the goods arrive at the buyers place of business.The revenue recognition principle requires retailers to recognise sales revenue when it is earned which is not necessarily at the same time that the cash is received. (T/F)A financial market is a place where money is traded. Describe how it works.
- Internet companies that simply act as agent or broker for the transfer of goods can record revenue based on: A. the cost of the product sold. B. the fees it charges sellers. C. the sales price of the product.Which of the following is not a characteristic of FOB Destination?A. The seller pays for shipping.B. The seller owns goods in transit.C. The point of transfer is when the goods leave the seller’s place of business.D. The point of transfer is when the goods arrive at the buyer’s place of business3 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
- Required Given that prudence is the main consideration, discuss under what circumstances, if any, revenue might be recognized at the following stages of a sale. (a) Goods have been acquired by the business, which it confidently expects to resell very quickly.(b) A customer places a firm order for goods.(c) Goods are delivered to the customer.(d) The customer is invoiced for goods.(e) The customer pays for the goods. (f) The customer’s cheque in payment for the goods has been cleared by the bank.Which of the following is an agent in a purchases and payments structure model? Question 6Answer a. Cash disbursement b. Inventory c. Employee labour d. Supplier e. Receipt of goodsCan a sales journal be used to record sales on account and a cash sale? Why or why not?
- What are the ways that payments by a seller to a customer is done?Arbitrage is the practice of making money by simultaneously buying in one market and selling in another. It takes advantage of price differences between the two or more markets. Give an example and explain how is this possible. Give enough detail that we can understand the basics of the transaction.Which of the following is NOT a financial transaction? a. purchase of products b. cash receipts c. update valid vendor file d. sale of inventory
