Answered: If a company has accounts receivable…

If a company has accounts receivable from ordinary customers and from related parties, can they combine those receivables in their financial statements under U.S. GAAP? Under IFRS?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 10Q: Why is the effective-interest method of amortization required under the International Financial...

See similar textbooks

Related questions

Q: Which of the following is not classified as a financial instrument? Convertible bond C. Loan…

A: Solution: "Warranty provision" is not classified as a financial instrument.

Q: Explain the impact of the collection of these receivables on the Financial Statements.

A: Introduction:- Financial statement gives clear picture of financial position of the company.…

Q: Characterize the accounting treatment of notes, including installment notes, issued for cash or for…

A: Introduction Notes are the short term financial instrument, also called as Promissory Notes, that…

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

A: Goods that are sold in a year can presented for warranty repair in upcoming years. But this warranty…

Q: vable is reasonably assured, what is the net income to be recognized by the entity for the year…

A: Franchise Account The Purpose of providing the franchise business to allow to use the reputation of…

Q: (Based on Appendix 7B) Do U.S. GAAP and IFRS differ in the ability of a company to recognize in net…

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

Q: Which of the following items is an example of general unsecured creditors? Salaries payable Legal…

A: The unsecured creditor does not have right over any asset of the business in case of non-payment.

Q: Describe the accounting treatment of notes receivable

A: If the note receivable is due within a year, then it istreated as a current asset. They are commonly…

Q: Should the company prepare its financial statement based on IFRS or US GAAP?

A: Financial statements are the detailed records pertaining to the business. These are prepared by the…

Q: Indicate three reasons why a company might sell its receivables to another company.

A: Factoring: When one company sells its own receivables to a third party for collecting the cash from…

Q: What does it mean for CHS to securitize its receivables?

A: Compensating balance: A compensating balance is a minimum amount of cash that must be maintained by…

Q: In relation to receivables, an entity is required.by PFRSS to O All of these. Classify receivables…

A: Accounts Receivables - Accounts Receivable is represented as the amount due to the company on…

Q: 3. Should a note receivable from a related party be included in the balance sheet with notes…

A: Balance sheet: Balance sheet is a summary of assets, liabilities, and equity account that reports…

Q: Which of the following best describes the application ofgenerally accepted accounting principles to…

A: Accounting principles: These are the assumption, concepts, and guidelines necessary to prepare and…

Q: The companies dispose their accounts receivable because

A: The Companies in the normal course usually dispose their accounts receivables because it relieves…

Q: How does the FASB codification ASC 310-10-05-4 apply to banks and their accounting transactions? If…

A: The FASB codification 310-10-05-4 deals with the receivables during the year. receivable may arise…

Q: describe general principles of revenue recognition and accrual accounting, specifi c revenue…

A: According to IFRS, a company should recognize revenue from the sale of goods whenever the following…

Q: What is the basic obligation of a depositary bank to its depositor

A: Depositor means a person who deposits money into the bank for the purpose of savings. Depositary…

Q: What are three differences between IFRS and U.S. GAAP with respect to the recognition of financial…

A: Generally Accepted Accounting Principles: They are commonly known as GAAP. It is a collection of…

Q: Do U.S. GAAP and IFRS differ in the criteria they use to determine whether a transfer of receivables…

A: International Financial Reporting Standards: They are commonly known as IFRS. It is a set of…

Q: What are two differences between IFRS and U.S. GAAP with respect to the classification of financial…

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

Q: One of the roles of financial markets is to: O A. conduct fiscal policy. O B. transfer funds from…

A: In today's era of globalization, Financial market is the most important and indispensable part of…

Q: Determine the impact that specific differences between IFRS and U.S. GAAP have on financial…

A: The distinctive points are listed below: S. GAAP is only used in USA (United States of America),…

Q: Explain the concept of American depositary receipts (ADRs).

A: Answer: Meaning of American depositary receipts (ADRs): American negotiable securities that signify…

Q: Explain how bills of endorsement work. Are they classified as Off-Balance-Sheet (OBS) assets or OBS…

A: An endorsement of bill is defined as the procedure through the bill holder or maker for bill…

Q: Explain accounting issues related to disposition of accounts and notes receivable.

A: Accounts receivable refers to the amount that is owed to the company as a result of providing goods…

Q: What are the requirements about forms of Bills or Notes under ULB?

A: "Since you have asked multiple question, we will solve the first question for you. If…

Q: When do businesses record warranty expenses, and why?

A: Warranty: It is an agreement made by the company to provide guarantee against the defects in the…

Q: How should the payment of FBT of $500 of a New Zealand resident company be recorded in the company’s…

A: FRINGE BENEFIT TAX: Fringe benefit tax (FBT) was a form of tax that companies paid in lieu of…

Q: In financial accounts, how are interfund transactions accounted for

A: An accounting firm's financial statements serve as concise summaries of its activities, conveyed…

Q: A formal obligation that entitles one party to receive payments and/or a share of assets from…

A: Sometimes at the time of purchase or sale of asset, one party exchanges something with another…

Q: What is the relationship of the promissory note between the maker and the payee?

A: A note of hand can be a financial instrument that contains a written promise by one party (the…

Q: What occurs when a business pledges its receivables?

Q: What occurs when a business factors its receivables?

Q: What two purposes do firms achieve by estimating future uncollectible accounts?

A: What two purposes do firms achieve by estimating future uncollectible accounts?

Concept explainers

Balance of Payments

BOP is categorized into the following three components:

Question

If a company has accounts receivable from ordinary customers and from related parties, can they combine those receivables in their financial statements under U.S. GAAP? Under IFRS?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Please explain and analyze the effect of major differences between IFRS and U.S. GAAP related to the financial reporting of a specific category of account (e.g. current liabilities, provisions, employee benefits, share-based payment, income taxes, revenue, financial instruments, leases).
Singletary Associates has accounts receivable due from normal credit customers and also has an account receivable due from a director of the company. Singletary would like to combine both of those receivables on one line in the current assets section of their balance sheet and in the disclosure notes. Is that permissible under U.S. GAAP? Under IFRS? Explain.
(Based on Appendix 7B) Do U.S. GAAP and IFRS differ in the ability of a company to recognize in net incomethe recovery of impairment losses of accounts and notes receivable?
What is the applicable financial reporting framework in the U.S. known as? a. The Internal Revenue Code b. IFRS c. GAAP d. GAAS
Explain and analyze the effect of differences between IFRS and U.S. GAAP related to the financial reporting of: Current liabilities Provisions Employee Benefits Share-based payment Income taxes Revenue Financial instruments Leases
Do all transactions by U.S. companies with foreign parties require special accounting procedures by the U.S. companies? Explain.
what are disadvantages of national or international accounting uniformity?
1. Why don’t the additions and deductions from the bank balance on a bank reconciliation require adjustment by the company? 2. Do all transactions by U.S. companies with foreign parties require special accounting procedures by the U.S. companies? Explain.
Why is the effective-interest method of amortization required under the International Financial Reporting Standards?
"How do the principles of revenue recognition under the International Financial Reporting Standards (IFRS) impact the timing and amount of revenue recorded in a company's financial statements?"
Which one of the following is financial instrument is used by the exporter and importer to fulfill their short term financial requirement? O a. Treasury Bills O b. Bankers' acceptances C. Certificate of Deposits O d. Commercial Papers
Which of the following is essentially unsecured? A• Certificate deposits B• Treasury bills C• Commercial papers D• Repurchase agreement