When merchandise was shipped by the consignor to the consignee and freight on shipment was paid by the latter, then:   Sale is properly recognized by the consignor. The cost per unit of the merchandise will eventually increase. Freight in is properly recognized by the consignee. The consignee, upon receipt of the goods, is already

Q: When the buyer shoulders the shipping cost of a shipment, the right term to state in the invoice is

A: We have to find the right term to mention in the invoice, when the buyer is willing to pay the…

Q: How should a non vat seller treat input vat paid on the purchases from vat supplier of inventories…

A: The major purpose of adopting VAT is to reduce the effects of multiple taxes and the cascading…

Q: Receivables are amounts due from others that arise from the sale of goods or services. Select one:…

A: Accounts receivables represents the amount due to firm for the goods or services sold on credit.…

Q: What is difference between accounting for a long-term contract and accounting for a more normal sale…

A: Sale Revenue is recognized when the goods are actually dispatched and delivered to the customer. In…

Q: In a purchase transaction, when the buyer includes a debit to transportation in and an addition to…

A: FOB Destination, freight collect: All the responsibility of goods lies with the seller till…

Q: Internet companies that simply act as agent or broker for the transfer of goods can record revenue…

A: Internet companies that simply act as agent or broker for the transfer of goods , act in the…

Q: The revenue recognition principle requires retailers to recognise sales revenue when it is earned…

A: The accrual basis accounting system is considered a feature of the accrual base accounting system…

Q: tatement is INCORRECT, explain why the

A: Cost, insurance, and freight (CIF): It is an international agreement in shipment that shows the…

Q: under the cost recovery method of revenue recognition, a. Income is recognized immediately b. Income…

A: Cost recovery method of recognition of revenue is used when there exists substantial doubt regarding…

Q: Which of the following conditions would violate the revenue recognition principle? Revenue is…

A: Revenue: This is the income of a firm during an accounting period. The income is recognized as and…

Q: Which of the following statements regarding freight costs is true? Oa. FOB destination means that…

A: The inventory is recorded as current assets in the balance sheet . The inventory is recorded…

Q: Accounting being an information system follows basic accounting concepts or principles also known as…

A: Notes: “Since you have asked multiple questions, we will solve the first question for you. If you…

Q: Due to this accounting principle I postpone the moment I reveal expenses on my goods to the moment I…

A: Principle means the fundamental upon which the books of account are prepared.

Q: None

A: When goods are loaded onto a transportation carrier at the shipping point, ownership and…

Q: The major revenue of a merchandiser is ________ while the major expense(s) is (are) ________.

A: Merchandiser and Service Provider - There are two types of company that deals with the different…

Q: 1. A purchaser dissatisfied with his purchases returns the goods to the seller for a cash refund.…

A: A perpetual inventory system, as opposed to a physical inventory, is a program that constantly…

Q: t is generally agreed that sales revenue should only be ‘realized’ and so ‘recognized’ in the…

A: Accrual Basis of Accounting:Accrual Basis of accounting refers to the accounting, where the…

Q: Companies that use OSD can deduct the cost of goods sold or the cost of care provided

A: This law allows taxpayers to deduct 40% as standard deduction in computation of net taxable income.…

Q: The cost of PPE includes which of the following : Its invoice price, less any cash discount for…

A: The cost of PPE includes all those expenses which are incurred directly on the PPE for making that…

Q: Freight costs paid by a seller on merchandise sold to customers will cause an increase to a…

A: In operating expenses for the seller. Explanation:In operating expenses for the seller.When a seller…

Q: According to International Financial Reporting Standards (IFRS), which of the following is a key…

A: Recognizing revenue accurately is a fundamental aspect of accounting, ensuring financial statements…

Q: Which of the following statements is incorrect? a) Sales tax collected by a seller is recorded as…

A: Free on Board contracts are contracts in which the seller is responsible only till goods are on…

Q: Why do you add transportation in and do not deduct delivery expense when determining the cost of…

A: For a buyer, the cost of merchandise purchased is considered as a net cost incurred to buy the…

Q: f goods are sold on terms FOB shipping​ point, the​ ________.         A. seller normally pays the…

A: The invoice contains all the terms related to sale like FOB point, discount and due date of the…

Q: Indicate whether each of the following statements is true or false. Delayed recognition of revenue…

A: 1) As per Revenue recognition principle, Delayed recognition of revenue is appropriate if the degree…

Q: For purposes of computing the MCIT, which will not form part of cost of goods sold for traders:…

A: MCIT is minimum corporate income tax, which is being payable by the domestic companies. The rate…

Q: Revenue can be recognized when all of the following criterias are met EXCEPT     There is credible…

A: BEFOR REVENUE IS RECOGNIZED FOLLOWING CRITERIA'S MUST ME MET : 1. PERSUASIVE EVIDENCE OF AN…

Q: In deciding whether to accept a special order, freight charges paid by the seller are relevant. True…

A: Special orders are those that are given for the goods not generally available in the market and…

Q: If the seller is paid after delivery of goods or services and the time value of money is viewed as…

A: If the seller is paid after the delivery of goods or services and the time value of money is viewed…

Q: According to PAS 18 Revenue, which of the following is not a criterion to be satisfied before…

A: As Per PAS 18, Criteria of Revenue recognition is as follows: The outcome of the transaction is…

Q: Payable turnover is a measure of cost ot goods sold and accounts payable. Select one: O True False

A: Payable turnover ratio is calculated as follows -  cost of goods sold / average accounts payable

Q: The buyer should be responsible for the freight (legally) but the seller paid for it A. FOB shipping…

A: FOB destination stands for freight on board, is an incoterm which is used when there is trade…

Q: Using the contract-based approach, revenue is recognized for the sale of goods when the following…

A: According to the IFRS criteria, for revenue to be recognized, the following conditions must be…