An item that is not a contingent liability is:A. premium offer to customers for labels or boxtops.B. accommodation endorsement on customer note.C. additional compensation that may be payable ona dispute now being arbitrated.D. note receivable discounted.A loss contingency that should be accrued is:A. note receivable discounted.B. pending lawsuitC. tax in disputeD. estimated claim under a service warranty on newproducts sold.

Answer: An item that is not a contingent liability is : option A: premium offer to customers for…

Answered: An item that is not a contingent…

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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7. TRUE or FALSE. In discounting of customer’s note under conditional sale, an account “Note Receivable-Discounted” is credited. This account is a liability which will be presented under the current portion.
Please solve
7.If a credit marked as "Upon receipt by the beneficiary of notice from the issuing bank that a draft has been . paid under this credit, a sum equal to the amount of such draft again become available under the credit" it is a (n) a. accumulative revolving credit b.non- accumulative revolving credit c.automatically revolving credit in relation to value d. non- automatically revolving credit in relation to value
TRUE OR FLASE? The effect of a lender agreeing to give the borrowing entity a grace period within the reporting period will make a liability noncurrent.
Supplier of good on credit is only interest in Statement of Financial Position.i.e indication of current state of affairs.
True or False. 1. Maturity value is the amount collectible on the agreed date of payment. 2. The creditor has no right to authorize anybody to collect from the debtor. 3. A creditor may authorize anybody to accept payment from the debtor on his behalf. 4.
The allowance for doubtful is not: a. credited when bad debts expense is estimated and recorded b. a liability account c. used instead of reducing accounts receivable directly d. a contra asset account e. debited when uncollectible accounts are written off
A promotional item offered to buyers of specific products is called ________. Group of answer choices a service-type warranty an assurance-type warranty an accretion a premium
When the allowance method of recognizing bad debt expense is used, the allowance for doubtful accounts decrease when Specific account receivable is collected Account previously written off is collected Account previously written off becomes uncollectible Specific uncollectible account is written off
Management can choose between two bases in calculating the estimated uncollectible accounts under the allowance method. One basis emphasizes an income statement viewpoint whereas the other emphasizes a statement of financial position viewpoint. Identify the two bases and contrast the two approaches. How do the different points of view affect the amount recognized as Bad Debts Expense during the accounting period?
Statement I. If the pattern of the repairs cannot be established and the obligation for warranty cannot be reasonably estimated, warranty costs are recorded as expense when repairs are actually made, thus there is no accrual of liability.Statement II. The transaction price for the sale of the product with warranty is allocated between the stand-alone selling prices of the product and warranty. A. Both statements are true. B. Both statements are false. C. Statement I is true; Statement II is false. D. Statement I is false; Statement II is true.
It is a receivable financing activity where the Entire Receivable's ownership is sold to the Factee Assigning Factoring Pledging Discounting

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An item that is not a contingent liability is: A. premium offer to customers for labels or box cops. B. accommodation endorsement on customer note. C. additional compensation that may be payable on a dispute now being arbitrated. D. note receivable discounted.