Sam MOnammed AISaadi Identify the incorrect statement from the following: If there is a delay in the customer payment of a period more than three months then the receivable need to discounted to present values Noncash consideration can be part of contract as pér IFRS 15 The transaction price is not always set by the parties to the contract. In such case estimates can be used to determine transaction price. The transaction price may have variable consideration

Sam MOnammed AISaadi Identify the incorrect statement from the following: If there is a delay in the customer payment of a period more than three months then the receivable need to discounted to present values Noncash consideration can be part of contract as pér IFRS 15 The transaction price is not always set by the parties to the contract. In such case estimates can be used to determine transaction price. The transaction price may have variable consideration

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If a firm changes how they account for long-term contracts, what will be the proper accounting treatment? O This is considered a change in principle, so the firm will account for the change prospectively. O The firm will account for the change retrospectively. O This is considered a change in estimate, so the firm will account for the change prospectively. O Neither of these answer choices are correct.
In a CDS the payoff is a payment made by CDS _____ to CDS _______ and occurs when the _______ defaults buyer; seller; buyer seller; buyer; reference entity buyer; seller; reference entity seller; buyer; buyer buyer; seller; seller
True or False: When a forward contract is settled in cash, the short side of the contract must pay money when thefuture realized price at the expiration of the contract is low.
Assume you are lending money to company X. A credit default swap (CDS) consists of an agreement by a third party to pay the lost principal and interest of a loan to you (the CDS buyer) if a borrower defaults on a loan. Which of the following is false? O A. A Swap completely solves the problem that company X might default OB. A Swap solves the default problem from Company X on the condition that the third party (CDS provider) will not default. O C. When financial crisis happens, the CDS seller may have to pay recovery to many CDS buyers, and then the CDS seller could default. O D. B and C are part of the reasons for 2008 Global financial crisis.
Fill in the blanks to complete sentence. 8. ______bond ensures the repayment of the advance by the exporter in the event of the non-performance of his contractual obligations.
eceivables arise due to a deferred sale, and companies are often unable to collect all their debts, which means that part of those debts may become non-existent or there is doubt about the possibility of collection. 1- What is the difference between bad debts and doubtful debts? 2- Draft an example (supported by numbers) to explain the method of doubtful debts in dealing with bad debts, provided that the explanation includes accounting restrictions and the impact on the financial statements? 3- Explain why the use of the direct method (bad debt method) conflicts with generally accepted accounting principles? 4- One of the methods for estimating doubtful debts is the deferred sales method, the receivables balance method, and the receivables aging method. Required: Formulate an example (enhanced by numbers) to explain the method of aging receivables in estimating doubtful debts, taking into account the following: (1) the number of clients should be 10 clients, (2) the percentages…
The market flex provision in an underwriting/syndication agreement means that the underwriter/lead syndicator has the right to cancel the loan agreement. True False
Suppose that all possible types of perpetuities (differentiated in payment starting periods and payment amounts) are traded at fair prices in the market. In this circumstance, could you find a fair price of all types of annuities?
Is offering clients big discounts to shift future revenue into the current quarter a violation of US GAAP rules for revenue recognition?
Which of the following is FALSE regarding ARM loans? ○ Lenders only originate ARMs if the expected benefit from shifting interest rate risk is greater than the increased risk of borrower default caused by adjusting composite rates none of the answer choices is FALSE ARMs with shorter term index means increased risk to borrower because shorter term index rates have more volatility ARMs with more frequent adjustments to the composite rate are more risky to lenders than ARMs with less frequent adjustments
Contract terms: Multiple Choice confer the rights and obligations of the borrower. depend on data in financial statements that are issued before the contract is executed. cannot be designed to eliminate or reduce conflicting incentives. do not use financial accounting numbers to monitor compliance with contract terms.
Use the following information to prepare a statement of cash flows for Studio One for the month ended December 31. The cash balance at the start of December 1 was $1,000. (Amounts to be deducted should be indicated by a minus sign.) Cash dividends to shareholders $ 2,000 Cash received from customers 23,500 Cash investments from shareholders 11,000 Cash paid for equipment 3,000 Cash paid for truck 22,000 Cash paid for expenditures 6,000