Which of the following statements is NOT true regarding gift card revenue recognition? When a gift card is sold, the seller establishes a liability on its balance sheet. Breakage can only be recognized as revenue to the extent that it is probable a reversal will not be necessary. O Breakage refers to the unused portion of gift card balances. The amount received from the sale of gift cards is required to be recognized as revenue when the gift cards are sold.

Which of the following statements is NOT true regarding gift card revenue recognition? When a gift card is sold, the seller establishes a liability on its balance sheet. Breakage can only be recognized as revenue to the extent that it is probable a reversal will not be necessary. O Breakage refers to the unused portion of gift card balances. The amount received from the sale of gift cards is required to be recognized as revenue when the gift cards are sold.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Why in franchise arrangements may it be improper torecognize the entire franchise fee as revenue at the dateof sale?
The following are causes of extinguishment of a contract of deposit EXCEPT: a. Death of either party in case of onerous deposit b. Loss or destruction of thing deposited without fault of the depositary c. Payment of principal obligation d. Novation
Which of the following is not an accurate description of the Allowance for Doubtful Accounts? Multiple Choice The account is a contra account. The account is a liability. The amount of the Allowance for Doubtful Accounts decreases the net realizable value of a company's receivables. The account is increased by an estimate of uncollectible accounts expense.
1. Sales journal must contain the following: * A) Date, Name and Address of Buyer, Sales Invoice or OR No. B) Name and Address of Buyer, Sales Exempted and RDO Number C) Total Invoice Amount, VAT Output Tax, and Date of when the amount is to be remitted to BIR D) None of the above. 2. Included in non-deductible interest expense are: * A) Interest paid in advance B) Interest treated as capital expenditures C) Interest on amortization D) All of the above 3. These are the data included in the Purchase Journal * A) Name and Address of Supplier, Date, Total Invoice Amount B) Name and Address of Buyer, Date, Total Invoice Amount C) Name and Address of Supplier, Date, VAT Output tax D) Name and Address of Supplier, Date, Delivery Receipt
When should revenue from the sale of merchandise normally be recognized? A)When the customer takes possession of the merchandise. B)When the customer takes possession of the merchandise, if sold for cash, or when payment is received, if sold on credit. C)Either on the date the customer takes possession of the merchandise or on the date on which the customer pays. D)When the customer pays for the merchandise.
18 - The entity made a discount due to the premature payment of the receivable arising from the sale it made on credit. In which account and how should this transaction be recorded? A) Domestic Sales account receivable B) Sales Discounts account receivable C) To the debt of the Domestic Sales accountD) To the debt of General Administrative Expenses accountE) To the debt of Sales Discounts account
explain your answer and do not plagraized form anywhere
19.Which of the following statements is incorrect? a. Trade receivables are recognized simultaneously with the recognition of related revenue when the criteria for revenue recognition are met. b. Under the gross price method, sales discounts are reported as a deduction from sales revenue. c. When accounts receivable are pledged against borrowing, the amount of accounts receivable pledged shall be included in the total receivables with disclosures. d. When discounting notes, the term discount period refers to the period of time that the note has been held by the endorser or payee; i.e. the period from the date of the note up to the date of discounting.
When goods are sold on a bill-and-hold basis, what conditions must be met to recognize revenue upon receipt of the order?
Which of the following conditions would support recognition of revenue? The seller’s price to the buyer is being negotiated. Delivery has occurred or services have been provided. Collection is possible. Significant risks and rewards of ownership of the goods will soon be transferred to the purchaser by the seller.
Indicate whether each of the following statements is true or false. In barter transactions, if the commodities exchanged are similar in nature, then no revenue is recognized. Answer If Sears sells garden tools but gives the customers the right to return them, Sears should recognize an asset for the tools expected to be returned by the customers. Answer In a consignment arrangement, the consignee recognizes revenue only after receiving notification of the sale. Answer

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