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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- What is the largest estimated possible loss that could arise in a safe payment schedule? no need to explain a. Book value of recorded assets b. Book value of recorded non cash assets c. Fair value of recorded assets d. Any of the aboveWhich of the following approaches is used to determine the recognition of an impairment loss of financial assets? Select the best answer. a. O An approach that reflects the losses expected over the contractual life of the asset b. A loan is impaired if it is more likely than not that a creditor will be unable to collect all amounts due. c. A dual-measurement expected credit loss approach that is based on a financial asset's credit risk at inception and changes in credit risk from inception, as well as the applicability of certain practical expedients d. O Present value of contractual cash flows approachThe 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 debtors
- 18. 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 soldWhich 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 liabilityA 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 of the following is not an example of an asset? Group of answer choices Supplies. Accounts receivable. Prepaid Insurance. Deferred revenues.Which of the following is classified as monetary? a. Goodwill b. Equipment c. Patent d. Allowance for doubtful accountsWhich 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 method
- 21. Statement 1: Under simplified approach for the impairment of receivables, an entity measures its expected credit loss without applying the 3 stages under the general approach.Statement 2: The changes in the loss allowance balance are recognized in profit or loss as an impairment gain or loss. a. Only Statement 1 is true. b. Both statements are false. c. Both statements are true. d. Only Statement 2 is true.Which of the following items represents a deferral?A. Prepaid insuranceB. Wages payableC. Fees earnedD. Accumulated depreciationQ:How is accidental loss of goods treated in final account in case: a: Goods had not been insured or Goods have been insured and the insurance company has claims associated with it.