Where, if at all, should the following items be classified on a statement of financial position? (a) Goods out on approval to customers (b) Goods in transit that were recently purchased FOB destination (c) Land held by a real estate firm for sale (d) Raw materials (e) Goods received on consignment (f) Stationery supplies

Q: The Trading Account shows the result of which of the following a Buying and selling of goods O…

A: Trading Account Consist of the following items   1. Opening Stock of Goods 2. Purchases Made 3.…

Q: Which of the following would provide evidence using the evidence-gathering technique of…

A: There are various method to gathering evidences. i.e. Documentation, Inspection, observation,…

Q: The realisation concept determines when goods sent on credit to customers are to be included in the…

A: Sales: It is an activity of selling goods and services in exchange for money.

Q: A portion of a client’s inventory is in public warehouses. Evidence of the existence of this…

A: Existence assertion says that all assets and liabilities of the business present in the financial…

Q: Sales revenues are usually considered earned when Select one: a. goods have been transferred from…

A: Definition: Sales Revenue: Sales Revenue is considered as the income received from the sale of the…

Q: Where, if at all, should the following items be classifiedon a balance sheet?(a) Goods out on…

A:

Q: Which of the following is classified as a general expense? U A) Depreciation costs of showroom O B)…

A: General expenses are different from selling and distribution expenses A) Depreciation costs of…

Q: Where should goods in transit that where recently purchased f.o.b. destination be included on the…

A: FOB destination: When the seller bears the freight charges for the delivery of merchandise from the…

Q: What is the account title used for revenue when goods are delivered to customers?

A: Account title: An account title is a unique name assigned to an account in an accounting system. An…

Q: Which one of the following statements is false? a. FOB shipping point means the buyer has legal…

A: FOB shipping point means title of the goods is transferred when goods are placed at the shipping…

Q: What kind of decisions are taken by the users of financial information?

A: Financial information helps the users to know their current amount they have, the amount they can…

Q: The Trading Account shows the result of which of the following   O a. Buying and selling of goods…

A: The trading account contains details relating to incomes and expenses that are directly related to…

Q: Common categories of a classified balance sheet include Current Assets, Long-Term Investments, Plant…

A: As per IFRS 1 Current asset is cash and cash equivalents and includes amount receivable with in…

Q: What document signals that a company should record thepurchase of goods on account?a. Purchase…

A:

Q: When does the cost of inventory become an expense?a. When cash is collected from the customerb. When…

A: Answer: b. When inventory is delivered to a customer

Q: Which of the following are the suppliers of goods/services whose invoices have not yet been paid? a.…

A: Accounting can be done in  both cash and accrual method

Q: When using a manual accounting information system, which of the following transactions would be…

A: Journal : A journal is a book of original entry where all the monetary transactions in the form of…

Q: Which of the following transaction is not recorded in the general journal? Select one: A. All of…

A: Correct option is A i.e.  All of the above

Q: Review each event below and determine what would likely be the type of items exchanged in the…

A: Every transaction has dual effect on the books of account. Assets = Liabilities + Stockholders'…

Q: Which accounting concept requires that any goods taken from inventory by the owner are treated as…

A: The business entity concept states that the company must separate transactions of the business from…

Q: When using a manual accounting information system, which of the following transactions would be…

A:

Q: Identify the letter for the principle or assumption from A through F in the blank space next to…

A: Given situation is: If $51,000 cash is paid to buy land, the land is reported on the buyer’s balance…

Q: Which of the following feature/s related to FOB shipping point under shipping terms, except?

A: Solution- FOB shipping point – Notes responsibility of goods and title transfer from seller to buyer…

Q: What to put in the income statement based on this list? Inventory Buildings & Improvements…

A: An income statement is a statement that contains the income and expenditure incurred during the…

Q: The expense recognition principle requires: Multiple Choice that expenses should be split between…

A: The expenses recognition principle states that expenses should be recognized in the same accounting…

Q: Before paying an invoice for goods received on account, the controller or treasurershould ensure…

A: Treasurer or controller:

Q: What is the name of the book of original entry (prime entry) used to record the purchase of…

A:

Q: Identify whether each of the following transactions, which are related to revenue recognition, are…

A: Revenue means the amount earned by selling the goods or services. Revenue is recognized in books of…

Q: The following items are recorded in the general journal, except Select one: A. Purchase of…

A: >Journal entries are the first accounting treatment that is given to a transaction, where in the…

Q: When a payment is made to a supplier for goods previously purchased on account, the debit is to an…

A: Solution:- Discussion of clarification regarding payment is made to a supplier for goods previously…

Q: The ownership of goods is transferred upon receipt of the goods by the buyer and the seller is the…

A: The invoice is prepared at the time of sale of goods on credit. The invoice details about the…

Q: State where each of the following items would appear on (1) a multiple-step income statement and on…

A: Introduction: Income statement: All revenues and expenses are shown in Income statement. It tells…

Q: The type of transaction that would appear in sales journal would be a sale of

A: Sales Journal is a daybook to record the sales on credit to customers

Q: Which of the following items would be recorded in the purchases journal? A. supplies purchased on…

A: Purchase journal is the journal specifically to record purchase transactions. It shows all the…

Q: Which should be classified as a financial asset? a. Patent b. Trade Accounts Receivable c.…

A: Financial assets are also known as non-physical assets. It is because it is generated through a…

Q: Each period, the Cost of Goods Available for Sale is allocated betweena. Assets and Liabilities.b.…

A:

Q: Which of the following needs an adjustment to the accounts receivable account of AB Company? a. a…

A: The freight cost  is paid by the seller till the goods have reached their destination and then the…

Q: When a company exchanges machinery and receives a trade-in allowance greater than the book value,…

A: Solution: When a company exchanges machinery and receives a trade-in allowance greater than the book…

Q: The accountant for Tom's Tax Preparation, Inc. recorded a transaction by debiting Accounts Payable…

A: The question is based on the concept of business accounting.

Q: How is cost of goods sold classified in the financial statements?a. As a revenueb. As an expensec.…

A: Cost of goods sold is the cost of goods that are being sold in that particular period. It is…

Q: A company indicates the condition of goods obtained onwhich of the following documents?a. Purchase…

A: Answer:   Option c.

Q: Which of the following best describes an application of the entity concept?

A: The business entity concept states that the transactions associated with a business must be…

Q: Which of the following best describes an application of historical cost? A.Property is exchanged…

A: historical cost is the original cost of the asset as recorded in the entities accounts record this…

Q: Which of the following transaction will be correct in regards to Source document of a Business? a.…

A: The source documents the main place where transactions are recorded.

Q: For each of the following, indicate whether the item would be reported on the balance sheet…

A: The financial statements of the business include balance sheet and income statement.