measuring and recognizing impairment loss on receivables?
Q: 18. Which of the following contingencies is usually not accrued in the accounts? a. uninsured risk…
A: Contingencies means:
Q: (a) In a troubled-debt situation, why might the creditorgrant concessions to the debtor?(b) What…
A: (a)The creditor mostly grants the borrower with certain concessions with regard to the settlement.…
Q: Item 7 of 25 Which of the following is not related to loans involving inventory? Select the correct…
A: Inventory refers to accumulated goods but not services kept by a firm with an objective to sell it…
Q: If in subsequent period, there is objective evidence of recovery in impairment previously recognized…
A: If previously Amortized debt measured by amortised cost has been recognized as debt in equity…
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: Which of the following should not be included in the current liability section of the balance sheet?…
A: The balance sheet is the statement of financial position of the business.
Q: Which is a valid statement regarding recognition of liabilities? a. A non-interest bearing…
A: The non-interest bearing note is the note on which no interest rate is mentioned. But interest has…
Q: Regarding accounting for troubled debt, the three statements that are not true are the following...…
A: Troubled debt restructuring refers to that debt restructuring when a creditor takes into…
Q: It is a stage of impairment that covers debt instruments having objective evidence of impairment at…
A: Answer: IFRS 9 deals with expected credit losses. There are three different stages. Stage 1- It…
Q: The Standard IAS 37 sets the criteria for recognition and measurement of Provisions; Contingent…
A: Contingent liabilities are those possible obligations whose existence shall be confirmed by the…
Q: What are the three elements of the definition for liabilities? List from the following items that…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: t relevant assertion should be used to record loans receivable net of an allowance for loan losses…
A: A loan receivable is that the amount of money owed from a human to a creditor (typically a bank or…
Q: Which of the following statements is false?a. A contingent liability should be disclosed in the…
A: A contingent liability is a liability which occurrence is depending on the outcome of a uncertain…
Q: A discounted note receivable is an example of a loss contingency? Is it true or false
A: This is a False.
Q: When is itpermissible to record bad debt expense only at the time when receivables actually prove…
A:
Q: Under IFRS: a. the entry to record estimated uncollected accounts is the same as GAAP. b.…
A: Definition: IFRS means international financial reporting standards developed and issued by IASB to…
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: 1. An entity determines that the credit risk on a loan receivable has not increased significantly…
A: As per IFRS 9- Financial Assets defines three stage model for impairment based on changes in credit…
Q: What is the largest estimated possible loss that could arise in a safe payment schedule? no need to…
A: the largest estimated possible loss that could arise in a safe payment schedule are the value of…
Q: Indicate whether each statement best describes the allowance (A) method or the direct write-off…
A: Allowance method: It is a method for accounting bad debt expense, where uncollectible accounts…
Q: If there is evidence that an impairment loss on loans and receivables has been incurred, the amount…
A: Impairment Loss = Carrying Value - Recoverable amount Recoverable Amount is higher of the…
Q: Which of the following items is not being considered in the computation of recovery percentage of…
A: An unsecured creditor is an individual or institution that lends money without obtaining specified…
Q: Which of the following is a characteristic of a current liability? A. It is an avoidable…
A: Liabilities are classified into two types. 1. Current liabilities ; which are expected to be paid…
Q: A statement of affairs measures a deficiency – traceable to unsecured creditors without priority –…
A:
Q: Which of the following statements is incorrect regarding the classification of accounts and notes…
A: In case of valuation of accounts that are to be appropriately offset against the proper accounts…
Q: Which of the following statements is most likely to be correct? Bad debts recovered account, if…
A: The company will maintain a book called journal where all the transactions will be recorded. From…
Q: Which of the following statements is false? Select one: a. A contingent liability should be…
A: A contingent liability is a liability which may occur in the future due to some circumstances not…
Q: What is the theoretical justification of the allowancemethod as contrasted with the direct write-off…
A: Determine the theoretical justification of the allowance method.
Q: We are currently working on Bad Debt expense and Receivables. Please see attachement.
A: Revised Journal Entry:
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: 8. When specified receivables are used to secure for a loan on a notification basis, which…
A: The account receivables are the current assets of the company, they represent the sale made by the…
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: Deferrals
A: Correct answer : D Outstanding Expenses.
Q: The adjustment to be made for provision for doubtful debt is O a. Credit profit and loss account…
A: The provision for doubtful debts is also known bad debts or losses on account receivables.
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: Which of the following statements is incorrect? a. Trade receivables are recognized…
A: Solution: "When discounting notes, the term discount period refers to the period of time that the…
Q: What are the three elements of the definition for liabilities? List from the following items that…
A: Liabilities are the obligations of the individuals or the company which have to be paid back after a…
Q: endorsee/purchaser in case the debtor fails to pay. b. The obligation of the endorsee/purchaser of…
A: Recourse in simple terms refers to that condition in sell wherein the seller bears the sole…
Q: Which of the following is not a liability?
A: Liabilities: Liabilities are referred to as the obligation of the business towards the creditors…
A. Past experiences on the collectability of the receivables
B. Present condition of the debtor, including the present economic environment
C. Future expectations based on information that are available without undue cost and effort
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- Which method delays recognition of bad debt until the specific customer accounts receivable is identified? A. income statement method B. balance sheet method C. direct write-off method D. allowance methodWhich of the following estimation methods considers the amount of time past due when computing bad debt? A. balance sheet method B. direct write-off method C. income statement method D. balance sheet aging of receivables method27-Which one of the following is an example for 'Deferrals'? a. Provision for doubtful debt b. Depreciation c. Unearned revenue d. Outstanding expenses
- The adjustment to be made for provision for doubtful debt is O a. Credit profit and loss account and deduct the provision from debtors O b. Debit profit and loss account and deduct the provision from debtors Oc. Credit profit and loss account and add the provision to debtors Od. Debit profit and loss account and add the provision to debtorsWhich of the following items is not being considered in the computation of recovery percentage of unsecured creditors without priority? a. Assets reserved for fully secured credits b. Assets reserved for partially secured credits c. Unsecured portion of partially secured liabilities d. Assets not used as collateral for any liabilityWhich accounting concept is applied when an entry is made for provision for bad debts? A. Going- concern B. Materiality C. Accruel D. Historic cost
- 6 Which of the following items is not being considered in the computation of recovery percentage of unsecured creditors without priority? Group of answer choices Assets reserved for partially secured credits Assets not used as collateral for any liability Assets reserved for fully secured credits Unsecured portion of partially secured liabilities18. Which of the following contingencies is usually not accrued in the accounts? a. uninsured risk of property loss by fire or other hazardsb. guarantees of indebtedness of othersc. noncollectibility of receivablesd. agreements to repurchase receivables that have been soldA basic difference between loss contingencies and “real”liabilities is: a. Liabilities stem from past transactions; loss contingen-cies stem from future events. b. Liabilities always are recorded in the accountingrecords, whereas loss contingencies never are.c. The extent of uncertainty involved. d. Liabilities can be large in amount, whereas loss contin-gencies are immaterial.
- Which accounting concept is applied when an entry is made for bad debts? A. Going-concern B. Materiality C. Accruel D. Historic costWhich of the following best describes the proper presentation of accounts receivable in the financial statements?a. Accounts Receivable plus the Allowance for DoubtfulAccounts in the asset section of the balance sheet.b. Accounts Receivable in the asset section of the balancesheet and the Allowance for Doubtful Accounts in theexpense section of the income statement.c. Accounts Receivable less Bad Debt Expense in theasset section of the balance sheet.d. Accounts Receivable less the Allowance for DoubtfulAccounts in the asset section of the balance sheet.1. Which of the following statements is incorrect regarding the classification of accounts and notes receivable? a. Valuation accounts should be appropriately offset against the proper receivable accounts. b. Segregation of the different types of receivables is required if they are material. c. Disclose any loss contingencies that exist on the receivables. d. Any discount or premium resulting from the determination of present value in notes receivable transactions is an asset or liability respectively. 2. Which of the following is an appropriate reconciling item to the balance per bank in a bank reconciliation? a. Bank service charge b. Chargeback for NSF check c. Deposit in transit d. Bank interest 3. Which of the following is not true? a. The Petty Cash account is debited when the fund is replenished. b. The imprest petty cash system in effect adheres to the rule of disbursement by check. c. Entries are made to the Petty Cash account only to increase or decrease the size of the…