Give me answer PART A:accountingobligations?Which principle dictates thefor take-or-pay contract(1) Record liability at full contract amount(2) Recognize when minimum payment due(3) Treat as regular purchase commitment(4) Defer until product delivery

Explanation of Take-or-Pay Contracts:Take-or-pay contracts are agreements where the buyer commits to…

Answered: PART A: accounting obligations? Which…

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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Book Print erences For a contract with multiple performance obligations, the seller allocates the transaction price to each obligation in proportion to the stand- alone selling prices of the underlying goods or services. True or False
Under PFRS 15, what is the specific point in time when the consignor satisfies is performance obligation under consignment contract? a. upon sale of consigned goods by consignee to final consumers b. upon signing of contract of consignment by consignor and consignee c. upon remittance of cash by consignee to consignor d. upon delivery of consigned goods by consignor to consignee
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Question 3 Which of the following is not an issue that must be considered in determining transaction price? Noncash consideration Consideration payable to the customer Any significant financing component in the contract All of the above are considered in determining the transaction price
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
Multiple-Choice Question: 1. Using the contract-based approach, revenue is recognized for the sale of goods when the following conditions have been met: A. the seller no longer has control over the goods. B. all of these conditions are met. C. delivery of goods has occurred, consistent with terms of a real or implied contract, and any related performance obligation has been completed. D. the amount of revenue and costs can be reliably measured and it is probable the cash will be collected. Please explain for the answer, and why the rest is incorrect.
Question- The contact asset
Partial satisfaction of a multiple performance obligation is reported on the balance sheet asa. contract liability.b. receivable.c. contract asset.d. unearned service revenue
None
1. A contract of adhesion is a: A. take or leave it contract. B. charging above the maximum interest rate allowed. C. equally at fault. 2. A judicially decreed incompetent will enter into a void/voidable/valid contract. A. Void B. Voidable C. Valid 3. A sales contract has an implied condition precedent/condition concurrent/condition subsequent. A. condition precedent B. condition concurrent C. condition subsequent
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.
The five steps in the revenue recognition process are: Identify the contract(s) with customers. 2. 1. lidentify the separate performance obligations in the contract. 3. Determine the Delivery Date 4. Allocate the transaction price to the separate performance obligations. 5 Recognize revenue when each performance obligation is satisfied. O True False

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PART A: accounting obligations? Which principle dictates the for take-or-pay contract (1) Record liability at full contract amount (2) Recognize when minimum payment due (3) Treat as regular purchase commitment (4) Defer until product delivery