RecevableQuestion 2 of 18For trade receivables, the fair value is deemed equal to theSelect the correct response:O the amount due from the buyer without adjustment for any trade discounts allowedthe price in a binding sale agreementexchange price between a seller and a buyer after taking into account the amount of any trade discounts and volume rebates allowed by the entity.the quoted price of the receivable in an active market< Previous

trade receivable are considered to be asset of the business. receivable arises when sale is made by…

Answered: Question 2 of 18 For trade receivables,…

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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QUESTION 7 Which of the following is true regarding an IOU instrument containing the language "payable on demand"? O The instrument contains an unconditional promise to pay but nevertheless is not negotiable because it is an IOU instrument. O The instrument is not negotiable because the words "payable on demand" are included; otherwise, the IOU instrument would contain an unconditional promise to pay. O The instrument contains an unconditional promise to pay; and; therefore, the fact that it is an IOU instrument does not affect negotiability. O The instrument is not negotiable because it does not contain an unconditional promise or order to pay, but it may be an enforceable contract. The instrument is not negotiable, nor could it be an enforceable contract, because it does not contain an unconditional promise to pay. QUESTION 8 Which of the following is not a negotiable instrument? O Traveler's check O Certified check OU.S. Dollars O Note O Certificate of deposit QUESTION 9 In the…
A firm decides to sell a pool of receivables to a factor with recourse (i.e. the firm selling the receivables must make payment to the buyer of the receivables in the event that the party that originally owes the money does not pay). Under Current U.S. GAAP, which of the following statements is (are) true: A. The firm selling the receivables is prohibited from reporting any Gain or Loss on the sale. B. Any cash received from such a transaction must be reported in the Financing Section of the Statement of Cash Flows. C. Both Statements A & B are true. D. None of the above statements are true.
Why would an investor consider doing an exchange or an installment sale?
Which of the following is not a part of Other Comprehensive Income? Group of answer choices foreign currency translation adjustments gains on the sale of equipment unrealized gains on available-for-sale debt securities unrecognized pension costs
If the functional currency is determined to not be the foreign entity's local currency, translation is done using a. the current rate method b. the functional method c. the remeasurement method d. the derivative method
7
True or False? Unsettled foreign currency transactions, including financial instruments, shall be considered to contain embedded foreign currency derivatives under ASC 815 if the transactions meet all of the following criteria: They are monetary items. They have their principal payments, interest payments, or both denominated in a foreign currency. They are subject to the requirement …to recognize any foreign currency transaction gain or loss in earnings. True False
The market flex provision in an underwriting/syndication agreement means that the underwriter/lead syndicator has the right to cancel the loan agreement. True False
Explain the relative merits of using an exchange-traded derivative contract versus using an over-the-counter derivative contract.
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

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