Gross selling price includes: I. the amount of the seller's debt assumed by the buyer. II. the fair market value of services received by the seller from the buyer. Oa, Only statement II is correct. Ob. Only statement I is correct. Oc. Both statements are correct. Od. None of these statements are correct.
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- TRUE OR FALSE. If the statement is INCORRECT, explain why the statement is INCORRECT. 1. Under CIF, the seller agrees to pay in lump sum or installment, the cost of the goods, insurance and freight charges.Statement 1 : In accordance with IFRS 15, in accounting for customer premiums, the transaction price at the time of sale is recognized partly as revenue which is related to sale of goods and partly as a liability for the performance obligation to settle the transfer of the promised premium.Statement 2: In accounting for customer premiums in accordance with IFRS 15, there is a premium expense equivalent to the cost of premiums recognized upon redemption of these premiums. A.True, True B.True, False C.False, False D.False, TrueStatement I. In the case of premiums as a component of transaction price, cash received from customer during the redemption of premiums shall be accounted as deduction from the cost of premiums.Statement II. The transaction price for the sale of the product with premium is recorded as a liability for the performance obligation that will be settled by the transfer of the promised premium. A. Both statements are true. B. Both statements are false. C. statement I is true; Statement II is false. D. Statement I is false; Statement II is true.
- Statement 1 : In accordance with IFRS 15, in accounting for customer premiums, the transaction price at the time of sale is recognized partly as revenue which is related to sale of goods and partly as a liability for the performance obligation to settle the transfer of the promised premium.Statement 2: In accounting for customer premiums in accordance with IFRS 15, there is a premium expense equivalent to the cost of premiums recognized upon redemption of these premiums. True, True True, False False, False False, TrueWhich of the following is not true regarding the accounting of provisions for customer premium offers under IFRS 15? transaction price recognized partly as revenue and a liability When premiums are distributed, revenue is recognized. When premiums are distributed, premium expense is recognized. The transaction price is allocated base on the stand-alone selling price of the product sold and the premium.Purchasing power gain or loss results from: a. Monetary asset only b. Monetary liability only c. Both monetary asset and monetary liability d. Nonmonetary assets and nonmonetary liability
- Statement 1: When the residual value is guaranteed by the lessee, the lessor shall include the same in its gross investment and net investment.Statement 1: When the residual value is not guaranteed by the lessee, the lessor shall include the same in its gross investment and net investment. Group of answer choices Only statement 2 is correct Both statements are incorrect. Both statements are correct Only statement 1 is correctTRUE OR FALSE? Interest revenue need not be added to the gross income to compute for the total income.During a period of deflation in which liability account balance remains constant, which of the following occurs? a. A purchasing power loss if the item is a nonmonetary liability. b. A purchasing power gain if the item is a nonmonetary liability. c. A purchasing power loss if the item is a monetary liability. d. A purchasing power gain if the item is a monetary liability.
- A seller recognizes the amount of returns from right to return sales as a/an ________. Group of answer choices expense revenue asset liabilitychoose the correct answer: Equity security acquired for trading should be measured at reporting date a. cost, being the purchase price b. cost, being the purchase price plus transaction costs c. fair value, with change in FV taken through profit or loss. d. fair value, with change in FV taken through other comprehensive income.Which of the following is not affected by a change in interest expense? a. gross margin b. EBIT c. ROE d. a. and b e. all of the above