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...

See similar textbooks

Related questions

Q: An investment has..accounting question

Q: Guo Company has an owner's equity of $397,600 and a net income of $136,608. Please solve these…

A: Step 1: Given Owner's equity = $397,600Net income = $136,608Payout ratio = 21%Return on assets ratio…

Q: Accounting Question

A: Step-by-Step Process:Calculate Current Total Cost per Unit:Total Cost for 35,000 units = $16,635,000…

Q: Theory of accounting

A: Step 1:Quick ratio or acid test ratio=Quick assets/ current liabilities Quick assets are total of…

Q: Please need help this financial accounting question

A: Step 1: Define Notes PayableNotes Payable is a type of debt or liability evidenced by issuance of…

Q: Accounting

A: Step 1: Define Operating LeverageOperating leverage measures the sensitivity of operating income to…

Q: Need answer the accounting question please give correct answer

A: Step 1: Define Relevant CostsRelevant costs are affected by a company's decision to either keep or…

Q: On January 1, the partners of Mori, Lux, and Khan (who share profits and losses in the ratio of…

A: Step 1: MORI, LUX, AND KHAN PARTNERSHIPProposed Schedule of LiquidationJanuary 31 CashNoncash…

Q: I want to correct answer general accounting

A: To calculate the Profitability Index (PI) for the project, we use the following…

Q: I need answer of this question solution general accounting

A: Step 1: Define Activity costAn item for which a cost has been compiled is called a cost object. This…

Q: Need help with this general accounting question not use ai and chatgpt

A: Step 1: Define Cash Flow StatementIn the context of accounting, the cash flow statement for a firm…

Q: Please provide this question solution general accounting

A: Step 1: Define Return on AssetsReturn on Assets is an example of financial ratio which measures the…

Q: Abc company has...accounting questions

A: Step 1: Define Return On EquityThe return on equity is a profitability ratio that would determine…

Q: I need answer of this question solution general accounting

A: Step 1: Define Contribution MarginThe contribution margin is determined as the difference between a…

Q: Please give me answer Accounting

A: Step 1: Define Variable Costing ExclusionsVariable costing exclusions means the cost that we do not…

Q: A U.S. firm has a $10,000,000 investment in a foreign subsidiary, and the U.S. dollar is weakening…

A: The scenario describes a U.S. firm with a foreign subsidiary. The U.S. dollar is weakening against…

Q: Can you please give correct answer for this accounting question?

A: Cash Conversion Cycle (CCC) CalculationGiven Data:Sales: $6,800Cost of Goods Sold (COGS):…

Q: Cost Accounting

A: To calculate the Beginning Equity, we use the accounting…

Q: Please provide answer this general accounting question

A: Step 1: Define NoteThe note is a financial security that is issued by companies to borrow amounts.…

Q: The Collins corporation this question solution general accounting

A: Step 1: Define Material Price VarianceMaterial price variance calculates the difference between the…

Q: Colorado's total cost of wip?

A: Explanation of Work in Process Inventory: Work in process (WIP) inventory represents partially…

Q: The following financial information was su....financial accounting question

A: Step 1: Define Income From OperationsIncome from operations can be said as profit before…

Q: Theory of general accounting

A: Key Definitions:Cost Principle: The accounting concept requiring assets to be recorded at their…

Q: Recognition upon initial consolidation of a variable interest entity (VIE) when VIE is not a…

A: Here are the key pieces of information and assumptions from the scenario:1. Previous Ownership and…

Q: I want to correct answer general accounting

A: Here's the solution for the given problem: Question a: Formula for Gross Profit:Gross Profit = Sales…

Q: Need help with this accounting question

A: Step 1: Define Inventory ValuationTo apply and follow the conservatism principle in accounting,…

Q: Hii somebody help me

A: Option a: This is actually an incorrect statement. There is no need for shareholder approval for a…

Q: State the payroll amount

A: Explanation of Regular Pay:Regular pay refers to the compensation earned by an employee for working…

Q: General Accounting Question posting

A: To compute Emily's taxable income for 2015 based on the provided information: Taxable Income…

Q: Provide this question solution general accounting

A: Step 1: Calculate Net Income After TaxesNet income before taxes = $92,400Tax rate = 30%Tax expense =…

Q: Accounting question given answer

A: Step 1: Present Value of Future Cash FlowsThe formula for Present Value (PV) of each cash flow…

Q: Mitvhel corporation manufactures...Accounting

A: Absorption Costing NOI = Variable Costing NOI + Fixed Manufacturing Overhead Released from…

Q: Please give me answer financial accounting question

A: Step 1: Define Residual IncomeResidual income is the economic profit that continues to flow in even…

Q: Exercise 11-52 (Algo) Physical Quantities Method; Sell or Process Further (LO 11-3, 4) Forest…

A: To address the questions posed in the exercise, we need to work through the joint cost allocation…

Q: Answer the question

A: Explanation of Time Period Assumption: The time period assumption states that business activities…

Q: None

A: Child care expenses in Canada may be deducted under Section 63 of the Income Tax Act if they are…

Q: I want help tutor

A: Detailed explanation:When changing from FIFO (First-In, First-Out) to the weighted average cost…

Q: Financial accounting 7.3

A: Step 1: Identify the sales amounts for breakfast, lunch, and dinner.Step 2: Exclude the amount for…

Q: Accounting

A: Step 1: Define Work-in-Process InventoryInventory refers to the stock that remains in the warehouse…

Q: Welborn Stores offers a coupon on its website for $5 off the customer’s next purchase of $30 or…

A: First, we need to calculate the net amount the customer needs to pay after applying the $5 coupon.…

Q: Financial Accounting = 5 marks How should a company account for returns of defective products under…

A: Explanation of Lifetime Warranty: A lifetime warranty is a guarantee from a company to repair or…

Q: Consider the following information in your analysis of degree of operating leverage. Unit sales…

A: The first step is to calculate the contribution margin per unit. The contribution margin per unit is…

Q: ?!

A: Explanation of Prudence Convention: The prudence convention is an accounting principle that requires…

Q: Need help to understand this

A: How the Economic Entity Concept Influences the Separation of Personal and Business TransactionsThe…

Q: Phoenix Corp's

A: Explanation of Credit Sales: Credit sales represent the total value of goods or services sold by a…

Q: Gladys Bank and Trust has $430 million in consumer loans with an average interest rate of 7.95…

A: Step 1: FormulaThe formula for interest revenue from each category of loans or securities is:Revenue…

Q: Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State…

A: To create the Flexible Budget Performance Report for Vulcan Flyovers for July, we need to compare…

Q: Need answer the financial accounting question answer do fast

A: Step 1: Define Direct Labor BudgetThe direct labor budget is part of the master budget and it is…

Q: Need Answer help

A: Explanation of Materiality Thresholds: Materiality thresholds are quantitative and qualitative…

Q: Accounting

A: Step 1: Define Financial RatiosFinancial ratios are indicators of financial performance and position…

Question

MCQ : ACCOUNTING

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

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

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.