Revenue recognition for most installment sales occurs at the point of delivery of the product or service. Underwhat circumstances would a seller delay revenue recognition for installment sales beyond the delivery date?

Q: Continuing franchise fees should be recognized O over time depending on the revenue recognition…

A: Revenue -  The amount of money received by a company during a specific period as a result of the…

Q: Warranty expenses result when a company sells products then estimates the units and cost per unit…

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Q: Revenue is usually recognized at the point of sale (a point in time). Under special circumstances,…

A: Revenue recognition:   GAAP (Generally accepted accounting principle) states that under specific…

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A:

Q: Is it true that, when one firm sells to another on credit, the seller recordsthe transaction as an…

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Q: QUESTION ONE It is generally agreed that sales revenue should only be ‘realized’ and so ‘recognized’…

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A: Revenue recognition states that the revenue has to be recognized when it is earned or realized or…

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Q: The installment method of reporting gains can be justified based on A. Mitigation of the annual…

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Q: Bias in revenue recognition would least likely be suspected if:A . the fi rm engages in barter…

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Q: Which of the following provides the best explanation for why warranty expense should be estimated…

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Q: (Recognition of Revenue—Theory) Revenue is usually recognized at the point of sale (a point in…

A: Revenue recognition: GAAP (Generally accepted accounting principle) states that under specific…

Q: Under the installment sales method, a. Gross profit is deferred proportionately to cash uncollected…

A: Installment sales involves a transaction in which the payment of at least one of the loan payments…

Q: How does a company report deferred gross profit resulting from the use of the installment sales…

A: Definition:   Installment sales method: Under the installment sales, the revenue and costs are…

Q: Using the allowance method, is Bad Debt Expense recognized in the period in which ( a ) sales…

A: Using the allowance method, Bad Debt Expense is recognized in the period in which sales related to…

Q: If a company sells a product, and gives the buyer the right to return the product within a specified…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: One of the following is not a transaction deemed sale and is therefore not subject to VAT.  Which is…

A: The answer is stated below:

Q: In accordance with PFRS 15, how should volume rebates and/or discounts on goods or services applied…

A: Discount refers to the reduction provided in the sale price of some goods and services by the seller…

Q: Question  The average collection period is the average amount of time that elapses from a credit…

A: Average Collection Period Average collection period is time allowed by the company to its debtors…

Q: All of the following typically would be considered when estimated sellers cost except ------…

A: all of the above will be considered as estimated seller cost except " Pre payment Penalty"

Q: When should a seller view a payment to its customer as a refund of part of the price paid by the…

A: Revenue recognition principle:   The revenue recognition principle refers to the revenue that…

Q: Which one among the following conditions is NOT a condition of Murabaha:   - Payment may be made…

A: Murabaha, also known as cost-plus finance, is an Islamic financing system in which the buyer and…

Q: If a company sells its accounts receivables to a factor O a. there is a gain on the sale of the…

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A: The contract of salaam requires all of the conditions of a normal sale contract except that it does…

Q: The contra revenue account that represents the reduction in the amount paid by a credit customer if…

A: Contra revenue account: it is a revenue  account with a  debit balance instead of usual credit…

Q: Both statements are incorrect.  Only S2 is correct.  Both statements are correct.  Only S1 is…

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Q: Sam MOnammed AISaadi Identify the incorrect statement from the following: If there is a delay in the…

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Q: Statement I. If the pattern of the repairs cannot be established and the obligation for warranty…

A:

Q: Distinguish between the installment sales method and the cost recovery method of accounting for…

A: Distinguish between instalment sales method and cost recovery method: Instalment sales method: The…

Q: The Sales Discounts Forfeited account​ ________.         A. is a balance sheet account   B.…

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Q: warranty with its product or service show an expense in the year of sale

A: Matching principle urges an entity to recognize expense , the period during which related revenue is…

Q: 1. Sales journal must contain the following: * A) Date, Name and Address of Buyer, Sales Invoice or…

A: Sales journal also known as sales day book records credit sales. Cash sales are recorded in the cash…

Q: Which of the following is not included in the FASB's 5-step model for evaluating when a company…

A: Revenue Recognition shows the transfer of promised goods or services in an amount that reflects how…

Q: Which of the following is indicative of discounts received from a supplier on account of early…

A: solution concept Quantity discount : discount given when large quantity is purchased Value discount…

Q: A can defined as a partial payment remunerated as an advance on the sales person's commission. O a.…

A: Charge account:- It is an arrangement where one person can purchase products or services on credit.…

Q: The recording of a product warranty expense in the year the merchandise under warranty is sold is…

A: The recording of a product warranty expense in the year the merchandise under warranty is sold is…

Q: Which of the following would not result in a reduction of the amount invoiced to a customer when a…

A: The discount decreases the amount of payment to be paid to creditors or to be received from…

Q: Since there is no basis for estimating the degree of collectibility, Astor Co. uses the installment…

A: Gross profit is profit earned by the company before considering the expenses of the company.

Q: Which of the following statements is NOT true regarding gift card revenue recognition? When a gift…

A: Breakage- It refers to the amount that is usually left stranded on the gift cards i.e. the portion…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.