S1 - In case of sale of goods, output VAT accrues even if the seller is not yet paid of the selling price. S2 - In sale of service, the seller is required to report the output tax only upon collection. Hence, no VAT is to be reported unless collection is made. O Both are false O Both are true O $1 is true S2 is true

S1 - In case of sale of goods, output VAT accrues even if the seller is not yet paid of the selling price. S2 - In sale of service, the seller is required to report the output tax only upon collection. Hence, no VAT is to be reported unless collection is made. O Both are false O Both are true O $1 is true S2 is true

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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.
Sales revenue would be considered: neither a current nor long-term liability O a current liability. O a long-term liability
Q17
The normal balance of the account "Sales Allowances" is a Debit; it is a contra revenue account to Sales Revenue OB. Credit; it is a contra asset account to Accounts Receivable OC. Debit, it is an expense in the income statement OD. Credit, it is a contra expense account to Bad Debt Expense -because A.