When should a manufacturing company recognize raw material purchase returns in its accounting records? a) When return shipment leaves company premises b) When vendor issues credit memo c) At the end of accounting period d) When materials were originally purchased

When should a manufacturing company recognize raw material purchase returns in its accounting records? a) When return shipment leaves company premises b) When vendor issues credit memo c) At the end of accounting period d) When materials were originally purchased

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 1MC: A company should recognize revenue when a. the revenue is earned b. die contract is signed c. the...

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When should a manufacturing company recognize
raw material purchase returns in its accounting
records?
a) When return shipment leaves company premises
b) When vendor issues credit memo
c) At the end of accounting period
d) When materials were originally purchased

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A company indicates the condition of goods obtained onwhich of the following documents?a. Purchase requisitionb. Purchase orderc. Receiving reportd. Supplier invoice
What document signals that a company should record thepurchase of goods on account?a. Purchase requisitionb. Purchase orderc. Receiving reportd. Supplier invoice
Which one of the following accounts is an asset similar to work-in-process inventory? Group of answer choices Construction in Progress Cost of Construction Billings in Excess of Cost Revenue from Long-Term Contracts
Which of the following functions is not included in the typical expenditure cycle involving goods? A. Disbursing payments to the vendors B. Placing an order for goods or services C. Posting to the accounts payable subsidiary ledger D. Processing a credit memo E. Ascertaining the validity of payment obligations
Most of the accounting cycles have journal entries that accompany the activities of each cycle. Which of the below expenditure or revenue cycle activities will not have journal entries? Processing the sales orderBilling the customerPaying a supplierReceiving payment from the customerReturning inventory to supplier
Most of the accounting cycles have journal entries that accompany activities of each cycle.Which of the below expenditure or revenue cycle activities will not have journal entries? Processing the sales orderBilling the customerPaying a supplierReceiving payment from the customerReturning inventory to supplier
Which of the following steps in the expenditure cycle would not appear as event entities in an REA diagram? Select one: a. Ordering b. Approve Supplier Invoices c. Cash Disbursements d. Receiving
materials into finished goods, sell the finished goods on operating cycle under PAS 1? account, and collect the receivables. for the entity to acquire raw materials on account and settle the account. d. For a manufactuțing entity, this is the usual time it takes for the entity to sell finished goods on account and collet the receivables.
According to International Financial Reporting Standards (IFRS), which of the following is a key criterion for recognizing revenue from the sale of goods? A) Transfer of legal ownership B) Physical delivery of goods C) Customer payment received D) Completion of production E) Initiation of manufacturing process
Which of the following statements is true about a purchase order? O a. It is a company's written offer to buy goods. O b. It is recorded as a purchase on its issue date by the purchasing company. O c. It is approved only after a supplier indicates acceptance of an order. O d. It is issued to a Purchasing Department by a Manufacturing Department.
Why is it important that a manufacturer disclose the cost of each classification of endinginventory that it holds at year end?
Revenue Cycle is:Select one:a. None of the aboveb. A recurring set of business activities and related to the process starting from finalizing product design and finishing off at cost accounting.c. A recurring set of business activities and related data processing operations associated with the purchase of and payment for goods and services.d. A recurring set of business activities and related information processing operations associated with providing goods and services to customers and collecting cash in payment for those sales.