Under PFRS 15, what is the specific point in time when the consignor satisfies its performance obligation under consignment contract? Upon remittance of cash by consignee to consignor.Upon delivery of consigned goods by consignor to consignee.Upon signing of contract of consignment by consignor and consignee.Upon sale of consigned goods by consignee to final consumers.

Consignment sales are sales made by the one person (consignee) on behalf of the other person…

Answered: consignor satisfies its performance…

Business

Accounting

consignor satisfies its performance obligation under consignment contract?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 3Q

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According to U.S. GAAP, when should revenue be recognized?a. When cash is received from the customerb. When the service is performed or the goods have been delivered to the customerc. When the goods or services have been priced and offered for saled. At the stated date in the contract
Which of the following best describes the current revenue recognition principle? Recognize revenue in the accounting period when the performance obligation is satisfied. Recognize revenue in the accounting period when cash is received. Recognize revenue when it is earned. Identify separate performance obligations in the contract.
An encumbrance represents the estimated future liabilities for goods or services resulting from placing a purchase order or signing a contract. a. True b. False
Which of the following statements are true? а. Revenue should be generally recognized when the company satisfies the performance obligation. O b. Revenue should be generally recognized when cash is received. С. Revenue should be generally recognized when production is completed. O d. Revenue should be generally recognized when the warranty expires.
The FASB has established a Five-Step process to recognize revenue. Which of the following is not one of those steps? A. Ability to identify the contract with the customer. B. Determination thatcollection of the entitled contractual consideration from the customer is probable. C. Properly identify all of the performance obligations within the contract. D. Ability to determine the transaction price. E. Properly identify all of the deliverables and allocate the transaction price to each.
Which of the following represents amounts owed for goods, supplies, or services purchased? Group of answer choices customer-related payable accounts payable liability for compensated absences bonds payable
The new standard, Revenue from Contracts with Customers, recognizes revenue based on a(n): Revenue-Expense Approach Asset-Liability Approach O Asset-Equity Approach O Liability-Equity Approach
The practice of recording advance payments from customers as a liability is an example of applying the O Going concern assumption. O Monetary unit assumption. O Historical cost principle. Revenue recognition principle.
Determine if this shall result in recognition of liabilities 4. Receipt of goods ordered from a supplier a. yes b. no
Determine if this shall result in recognition of liabilities 9. receipt of goods to be sold for the account of consignor a. yes b. no
Statement I. In the case of premiums as a component of transaction price, cash received from customer during the redemption of premiums shall be accounted as deduction from the cost of premiums.Statement II. The transaction price for the sale of the product with premium is recorded as a liability for the performance obligation that will be settled by the transfer of the promised premium. 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.
When recognizing revenue, a company has a performance obligation when it agrees to a. perform a service for a customer and receives cash payment O b. sell a product to a customer after receiving payment O c. receives cash payment O d. perform a service or sell a product to a customer