What is long-service leave and what is meant by a preconditional period; a conditional period; and an unconditional period?

Q: Explain how the obligation for postretirement benefits is measured and how the obligation changes.

A: The answer for this question is given generally as each organisations can following their own…

Q: What is seasonal dating?

A: It arranges the invoice date or the date at which the discount and credit period starts, to a time…

Q: What does the term “end-of-period convention” mean? What does it not mean?

A: End-of-period convention is an accounting concept according to which all income and outgoing payment…

Q: The ability to meet short term obligations is termed

A: A short-term liability is referred to as the financing obligation that being liable to an…

Q: Explain when and how a lessee accounts for a lease by the short-cut method.

A: The shortcut method is when the lessee and the lessor don't account for the lease at its…

Q: When a contract includes an option to buy additional goods or services, when does that option give…

A: Contract: Contract is a written document that creates legal agreement between the parties for buying…

Q: Define the term End-of-Period Convent ion?

A: Cash Flows refer to the amount of cash received or paid by a firm during a certain period of time.…

Q: ente the liability sec

A: Here Montano Inc. issued bonds at 9% when the market interest rate was 7%.  Due…

Q: When is an estimated loss on a long-term contract recognized, both for contracts that recognize…

A: Revenue recognized point of long term contract: A long-term contract qualifies for revenue…

Q: Why would the existence of conditions subsequent and precedent affect the discharge of a contract?

A: A contract is an agreement between more than one person to perform the duties mentioned in the…

Q: Sick pay benefits that are related to an employee's services already rendered, whose payment is…

A: Accumulate rights: Accumulate rights refer to those rights which can be carried forward to future…

Q: Explain the benefits of postretirement.

A: Post-retirement benefits may include life insurance  and medical plans, or premiums for such…

Q: Why the lease is considered a “short-term lease”?

A: Lease:   It is an agreement between an owner of an asset (Lessor) and a tenant (lessee) where the…

Q: In the phrase “end-of-period convention,” the word “period” refers to what?

A: Introduction: Revenues are the profits or benefits that one person is having, while costs are the…

Q: Define the term End-of-Period Convention?

A: Cash flows refer to the amount of cash that is either invested or received by the company during the…

Q: What are compensated absences?

A: Compensated absences are the absences or leaves for which the employees will be paid. Example of…

Q: If the down payment is non-refundable, how much is the contract liability to be initially recorded?

A: Contract liability that is to be recorded initially can be calculated by adding the down payment…

Q: Who may institute action for annulment of voidable contracts? Briefly discuss.

A: Contract Act- The Indian Contract Act of 1872 lays out the groundwork for forming a legally binding…

Q: a) Calculate the current rate of return of this obligation b) Calculate the Macaulay duration of…

A: Information Provided: Nominal rate = 1% Coupon rate = 107.28%

Q: What is a prior-period adjustment?

A: Statement of retained earnings: This is a financial statement that shows the amount of net income…

Q: Describe Short-Term Obligations Are Expected to Be Refinanced.

A: Refinancing refers to the process where revival of interest rate, payment schedule and terms of…

Q: A liability for compensated absences such as vacations, for which it is expected that employees will…

A: The compensation expense is the expense for which liability is recorded on the basis of future…

Q: If any contractual party breaches the obligation then what can be the course of specific action from…

A: Breach of contract: A breach of contract refers to a contract where two or more person comes into a…

Q: An experience rating, or merit rating a.  directly adjusts the benefit amount the unemployed…

A: The correct answer is option (c).

Q: What are the two types of losses that can become evidentin accounting for long-term contracts? What…

A: The two types of losses that can become evident while accounting for long-term contracts are:(1) A…

Q: If an insured fails to pay the premium when due, the insured's heallh policy will remain in force…

A: Health insurance is a type of insurance that helps to pays for medical costs incurred as a result of…

Q: a. What amount of income should be reported for the current year if the percentage of completion…

A: Formula: Revenue Recognized=  Cost Incurred to DateEstimated Total Cost×Contract Price-Revenue…

Q: What is an option? How does an Option differ from a forward or future contract?

A: Derivative Security: A derivative is financial security whose price and value are determined based…

Q: What does furlough mean?

A: Furlough: Furlough is a provisional leave of workers owing to particular requirements of a firm or…

Q: What are the two obligations of postretirement plans?

A: Defined benefit pension plans are the retirement designs that include providing a fixed and…

Q: Explain how to account for revenue on a long-term contract over time as opposed to at a point in…

A: The revenue recognition principle: The revenue recognition principle refers to the revenue that…

Q: As a rule, when the substitute obligation is lost prior to substitution, the obligation becomes a…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: How do the lessee and lessor will agree to modify the terms of a lease before the lease term ends?

A: Lease Agreement:   It is a contract between the owner of an asset (lessor) and a tenant (lessee) for…

Q: e contract revenue yo da

A: The percentage of completion method is a method of recognizing revenue of long-term contract or…

Q: The Claims Made Policy Form will pay for looses that occur at which of the following times? After…

A: Claim made policy is referred to as an insurance policy, which helps in providing the coverage at…

Q: when should th

A: When should the client representation letter be obtained? -The Clients Representation should be…

Q: In our Anderson Company example, we assumed that the lease could notbe canceled. What effect would a…

A: Lease: It is renting out an asset to the borrower for a specified time on which lease payments or…

Q: Define Other post-employment benefi ts

A: The concept of other post-employment benefits is created by GASB (Governmental Accounting Standards…

Q: What is a short-term lease? Describe lessee accounting for a short-term lease.

A: Short-term LeaseThis is a type of leasing which has a maximum lease term ranging from 1 year or…

Q: What Is Benefits of Long-Term Contracts?

A: Long-term contracts are the contracts which runs over number of years. Long-term contracts are also…

Q: What is the lease liability immediately after the first required payment?

A: A lease is a contract between two parties, in which one party provides its asset for use to another…