Which is not correct? The sale of VAT registrable persons are not subject to VAT and input VAT is also not allowed. The sale of VAT registrable persons are subject to output VAT and input VAT is allowed.
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Which is not correct?
The sale of VAT registrable persons are not subject to VAT and input VAT is also not allowed.
The sale of VAT registrable persons are subject to output VAT and input VAT is allowed.
The sale of non-VAT registered person who issued VAT receipts or invoices are allowed to credit input VAT.
All of the above
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- Which of the following statements is not true regarding revenue recognition regarding gift cards? A. "Breakage" refers to the unused portion of gift card balances B. "Breakage" can only be recognized as revenue to the extent that it is probable a reversal will not be necessary. C. It is typical that a portion of gift card sales will go unused by customers.Bill-and-hold transactions occur when theseller records a sale but the goods or serviceshave not been delivered. But, all types of Bill and Hold are not illegal. Group of answer choices : True FalseWhere goods are sold by a person who is not the owner thereof, and who does not sell them under the authority or with the consent of the owner
- Which of the following statements concerning internal control procedures for merchandise sales is not correct? a.Accounting for a sale begins with the receipt of a purchase order or some similar document from a customer. b.Shipping and billing documents are prepared based on the order document. c.A sale and its associated receivable are recorded only when the order, shipping, and billing documents are all present. d.The order document is not necessary for the buyer to be obligated to accept and pay for the ordered goods.Which of the following statement is not true about the del-credere commission? Select one: a. If del-credere commission is allowed, bad debt will be debited in consignment account b. Del-credere commission is generally relevant for credit sales c. If del-credere commission is allowed, bad debt will not be recorded in the books of consignor d. Del-credere commission is allowed by consignor to consigneeThe billing department prepares the customers' invoices and records the sale in the sales journal, is this considered improper segregation of functions, why or why not?
- In accounting for revenue recognition under ASC Topic 606, revenue can be recognized before a contract exists when cash has been received and: Goods have already been delivered to a customer, and there is no further obligation for the seller to deliver goods or services. The cash has been received for goods identified to be delivered and the cash is refundable. The cash has been received for goods or services to be delivered and the cash is nonrefundable. Revenue should never be recognized before a contract exists.what basic accounting principle is the basis for criticizing the direct charge off method for recording uncollectible accounts?an entity who does not pay at the time of a transaction as a results of credit sales is known as
- Answer the following questions about recording uncollectible Accounts Receivable (A/R): a) Describe both the direct write-off method and the allowance method of recognizing uncollectible accounts receivable. In your descriptions, be sure to identify the specific major difference between the approach taken for each method when recording uncollectible A/R. b) Which method is in accordance with GAAP? Discuss the reasons why the other method is not in accordance with GAAP.In the case of sales where the customer is billed before delivery of the goods, the seller should always recognize revenue before the products are delivered to the customer. the goods belong to the customer and revenue recognition is deferred until delivery. the seller may recognize revenue if control of the goods has been transferred to the customer even though physical delivery has not taken place. revenue will not be recognized until the goods are shipped to the customer.which of these substantive procedures is not used to obtain evidence about contingencies?a. Scanning expense accounts for credit entries.b. Obtaining a letter from the client’s attorney.c. Reading the minutes of the board of directors’ meetings.d. Examining terms of sale in sales contracts
