Acct 352 case 13 12

financial accounting 2 exam questions and answers

After acquisition they can be measured at amortized cost except those held for trading, such as derivatives, where fair value is used Consistent with cost based measurement, transaction costs that are a direct result of the issue of the liability are netted against its original fair value.

Obligation is not contingent or conditional on a future event. Notes may also be interest bearing or non-interest- bearing i.

The entry to record payment of the note and accrued interest is as follows: Notes payableNote that this definition require the liability to be based on an obligation that is created by a contract.

Acct 352 case 13 12

Some parts have been intentionally blurred. Financial liabilities are recognized originally at their fair value. Attention must be paid to transactions that occur near the end of one accounting period and the beginning of the next so that the goods and services received inventory or expense are recorded in the same accounting period as the liability accounts payable and both are recorded in the proper period. Repayments are made whenever there are sufficient funds available. Under international standards, non financial liabilities are measured initially and at each subsequent reporting date at the best estimate of the amount the entity would rationally pay at the BS date to settle the present obligation. Notes may also be interest bearing or non-interest- bearing i. The entry to record payment of the note and accrued interest is as follows: Notes payable , Sign up to view the full 12 pages of the document. Only pages are available for preview. Only pages are available for preview.

This is usually the present value of the resources needed to fulfill the obligation, measured at the expected value, or probability - weighted average of the range of possible outcomes.

Accounts payable arise because of the time lag between the receipt of the goods and services and the payment for them - period generally stated in the terms of sale and purchase.

financial accounting 2 exam questions and answers

Obligation is not contingent or conditional on a future event. Generally, an agreement entered with the bank that allows multiple borrowings up to a negotiated limit.

Financial accounting 2 exam questions and answers

Some parts have been intentionally blurred. Repayments are made whenever there are sufficient funds available. Therefore, they are measured in other way. Example: unearned revenue is usually measured at the fair value of the goods and services to be delivered in the future, and, where matching is an issue, the obligations are measured based on management's best estimate of the cost of the goods or services to be provided in the future. Only pages are available for preview. Sign up to view the full 12 pages of the document. This is usually the present value of the resources needed to fulfill the obligation, measured at the expected value, or probability - weighted average of the range of possible outcomes. Generally, an agreement entered with the bank that allows multiple borrowings up to a negotiated limit. The amount of actual bank indebtedness is reported on the BS, while total funds that the credit arrangements allows the company to borrow or any restrictions that are imposed by the financial institution are disclosed in the notes o Accounts Payable Accounts payable or trade accounts payable are amounts owned for goods, supplies or services purchased on open account related to the entity's ordinary business activity. If title has passed to the purchaser before the goods are received, the transaction should be recorded when the title passes. Only pages are available for preview.

Example: unearned revenue is usually measured at the fair value of the goods and services to be delivered in the future, and, where matching is an issue, the obligations are measured based on management's best estimate of the cost of the goods or services to be provided in the future.

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Accounting Text and Cases 12 Ed. Chapter 7