A commitment is a legal obligation that does not meet the technical requirements for recognition as a liability. O a. true Ob. false

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
A commitment is a legal obligation that does not meet the technical
requirements for recognition as a liability.
O a.
true
O b. false
When taking a physical inventory under the retail method, it is necessary to
know only the quantity of items on hand.
O a. false
b. true
Transcribed Image Text:A commitment is a legal obligation that does not meet the technical requirements for recognition as a liability. O a. true O b. false When taking a physical inventory under the retail method, it is necessary to know only the quantity of items on hand. O a. false b. true
Which of the following companies would be most likely to use the retail
method?
O a. Afarm supply company
O b. Awomen's dress shop
Oc Adealer in heavy machinery
O d. ATVrepair company
A successful credit policy balances an acceptable level of credit losses with
the potential for profit from total credit sales.
Oa. false
Ob. true
stion
Which of the following statements is true about factoring without
recourse?
O a. The fee will be lower than if the factoring were with recourse.
O b. The seller of the receivables is liable upon default of the debtor.
O c. The factor's risk is lower than if the factoring were with recourse.
O d. An example is the use of maior credit cards
Transcribed Image Text:Which of the following companies would be most likely to use the retail method? O a. Afarm supply company O b. Awomen's dress shop Oc Adealer in heavy machinery O d. ATVrepair company A successful credit policy balances an acceptable level of credit losses with the potential for profit from total credit sales. Oa. false Ob. true stion Which of the following statements is true about factoring without recourse? O a. The fee will be lower than if the factoring were with recourse. O b. The seller of the receivables is liable upon default of the debtor. O c. The factor's risk is lower than if the factoring were with recourse. O d. An example is the use of maior credit cards
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting for Current liabilities, Provisions and Contingencies
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
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education