Why are payments received from customers in advance, for either services to be performed and/or for goods to be delivered, classified as liabilities upon the receipt of the funds?

Q: Describe the accounting for refund liabilities.

A: Liabilities:   The liabilities are the amount of money which a business has to pay to the outside…

Q: How will the lender of the promissory note record the note on its books? as an expense as revenue…

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

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: escribe what is termed as “contingent liabilities” and discuss their accounting treatment.

A: Liabilities can be define as the group of financial obligations which have to be paid by the…

Q: What is the nature of the account Fund balance with Treasury? When is that account debited, and when…

A: Nature of accounts helps management to record the financial transactions as per double entry system…

Q: a)  Explain the difference between: Capital expenditure and revenue expenditure, giving an example…

A: Capital Expenditure: It is a expenditure made by company to acquire or renovate a property, plant or…

Q: If the value of an item can be measured and reasonably determined, this item can be recognized in…

A: An item can be recognized in the financial statement if it satisfies certain specified condition.…

Q: Which of the following represents amounts owed for goods, supplies, or services purchased? Group of…

A: The question is asking to identify the term that represents the amounts that a company owes for…

Q: how to compare between prepaid expenses and unearned revenue?

A: The adjustment for deferred items are made at the end of the year.

Q: Distinguish between financial liabilities and non-financial liabilities.

A: Liabilities are defined as the amount of money which is owed by a firm in exchange for goods and…

Q: What is meant by the term unearned revenue? Where should an unearned revenue account appear in the…

A: Revenue: It refers to the amount earned by a business from selling its goods or services to the…

Q: Accounts receivable are financial assets under the category Loans and Receivables that are measured…

A: Solution: As per IAS, Loans and receivables are financial assets that are measured at amortized…

Q: Under what circumstances should sellers consider the time value of money when recognizing revenue?

A:

Q: Liabilities represent amounts owed to outsiders (creditors) expected to be received from customers…

A: The balance sheet represents the financial position of the business. It records the assets and…

Q: Distinguish between cash-basis net income and accrual-basis net income.

A:

Q: Amounts collected for third parties represent liabilities until remitted. Provide several examples…

A: LiabilitiesLiabilities are referred to as the obligations of the business towards the creditors for…

Q: What is the difference between accrued liabilities an unearned Revenue accounts?

A: Accrued Liabilities :— An expenses of a Business or an Organization incurred  during a specific…

Q: how do deposit intistitutions differ from non-deposit institutions?

A: A financial institution is an intermediary business entity that helps to supply money from surplus…

Q: How does the maturity date of a promissory note affect its accounting treatment?

A: Accounting treatment refers to the way in which a financial transaction or event is recorded and…

Q: Explain the components of balance of Payments Accounts and describe the  impact of deficit and…

A: The balance of payments (BOP), sometimes known as the balance of international payments (BIP), is a…

Q: What factors need to be considered in determining whether a receipt is of an income or of a capital…

A: The essential distinction between Capital Receipt and Income is the "purpose" with which the asset…

Q: who is the vendor for interest payable

A: Lets understand the basics.When entity needs funds to run the business then they generally borrow…

Q: What are the types of debts that must be repaid quickly called?

A: Generally having to pay money to another person or item The majority of debts, including credit card…

Q: Explain the difference between the current account and the capital and financial account in the…

A: The balance of payment shall be the record of payment or receipt between a nation and a national of…

Q: Differentiate between the use of receivables in financing arrangements accountedfor as a secured…

A: Meaning of Financing with Receivable Financing receivable is refer as the arrangement in which…

Q: Which of the following is essentially unsecured? A• Certificate deposits B• Treasury bills C•…

A: Sources of Short term funds: Trade credit  Working capital loan Issuing commercial papers 3 Months…

Q: When initially recognizing the cash surrender value, what is the reason behind the allocation…

A: According to this principle of accounting, the revenues and expenses stated in the income statement…

Q: How are refundable deposits and customer advances similar? How do they differ?

A: Refundable Deposits: Refundable deposits are that money in advance offered by the customer. It is a…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.