Companies sometimes get special prices from suppliers if they undertake to purchase specified commodities from the supplier
Question:
Companies sometimes get special prices from suppliers if they undertake to purchase specified commodities from the supplier over a designated future period. These supply arrangements do not have to be recorded as assets and liabilities. However, in future leases will give rise to recording of assets and liabilities. Discuss why the transactions are to be treated differently.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 90% (11 reviews)
Thorough explanation The main reason why supply arrangements do not ...View the full answer
Answered By
Labindao Antoque
I graduated in 2018 with a Bachelor of Science degree in Psychology from Dalubhasaan ng Lungsod ng San Pablo. I tutored students in classes and out of classes. I use a variety of strategies to tutor students that include: lecture, discussions about the subject matter, problem solving examples using the principles of the subject matter being discussed in class , homework assignments that are directed towards reinforcing what we learn in class , and detailed practice problems help students to master a concept. I also do thorough research on Internet resources or textbooks so that I know what students need to learn in order to master what is being taught in class .
0.00
0 Reviews
10+ Question Solved
Related Book For
Financial Accounting And Reporting
ISBN: 9781292255996
19th Edition
Authors: Barry Elliott, Jamie Elliott
Question Posted:
Students also viewed these Business questions
-
Room descriptions do not have to be wholly verbal. Play a relevant sound when the player enters a particular room. Use play, so that game play can continue while the sound is playing.
-
Why do you feel that FASB wants investments treated differently depending on their type For example lets look at the unrealized gains losses for investments Why do we need to treat them differently
-
Why do companies prefer to classify leases as operating leases rather than as capital leases?
-
Perform the indicated operations. Let k be a natural number. a. (-2) c. (-2)4 e. Is (-2)2+ positive or negative? b. (-2) d. (-2)5
-
Suppose the variance of an IID sequence of random variables is formed according to Where is the sample mean. Find the expected value of this estimate and show that it is biased. 72 n! = 1
-
The most recent financial statements for Camryn, Inc., are shown here (assuming no income taxes): Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next...
-
Obtain customer feedback about the project
-
Danna Martin, president of Mays Electronics, was concerned about the end-of-the year marketing report that she had just received. According to Larry Savage, marketing manager, a price decrease for...
-
NPVIn late November 2 0 2 4 , as part of your growth plans, your consulting firm is considering luring a group of professionals from a competing practice to broaden the range of services offered to...
-
Consider the delays given in Table 7.6. Ben Bitdiddle builds a prefix adder that reduces the ALU delay by 20 ps. If the other element delays stay the same, find the new cycle time of the single-cycle...
-
Explain in your own words why in a finance lease the lessor shows in the statement of financial position a receivable rather than the unamortised amount of the initial investment in the physical...
-
Given that the details of operating lease commitments were required to be disclosed in the notes to the accounts under IAS 17, discuss why it was necessary to issue a new standard which incorporates...
-
Whitmore Company issued $500,000 of 5-year, 8% bonds at 97 on January 1, 2019. The bonds pay interest annually. Instructions (a) (1) Prepare the journal entry to record the issuance of the bonds. (2)...
-
226 Payroll Accounting Chapter 7: Comprehensive Projects-Paper-Based Versions One-Month Project NOTE! Templates needed to complete these exercises, including one containing year-to-date payroll data,...
-
The Westchester Chamber of Commerce periodically sponsors public service seminars and programs Currently, promotional plans ore under way for this year's program Advertising alternatives include...
-
Mastery Problem: Activity-Based Costing WoolCorp WoolCorp buys sheep's wool from farmers. The company began operations in January of this year, and is making decisions on product offerings, pricing,...
-
The following system of linear equations is called underdetermined because there are more variables than equations. x2x 3x3 = 4 2x1x2 + 4x3 = -3 Similarly, the following system is overdetermined...
-
Write a 2000-word Reflection paper on " Country Managers Simulation by considering the following points: Countries chosen during the simulation were Argentina and Brazil: 1. Explain why you did what...
-
A partial payment is made on the date(s) indicated. Use the United States rule to determine the balance due on the note at the date of maturity. The Effective Date is the date the note was written....
-
The purpose of this case is to come up with a contingency plan[s] in order to sustain the program Move With Me, a program that serves thousands of community members throughout Lower Manhattan. The...
-
Saddam Ltd is considering the possibility of diversifying its operations and has identified three firms in the same industrial sector as potential takeover targets. The following information in...
-
(a) The following ratios have been extracted from an analysis of the consolidated accounts of three companies North, South and East: Required: Comment on the respective performance of each of the...
-
The following are the accounts of Bouncy plc, a company that manufactures playground equipment, for the year ended 30 November 20X6. The directors are considering two schemes to raise...
-
Long-term liabilities are shown in two places in the business firm's balance sheet depending upon when the long-term liabilities are scheduled for payment. True False
-
Julio is single with 1 withholding allowance. He earned $1,025.00 during the most recent semimonthly pay period. He needs to decide between contributing 3% and $30 to his 401(k) plan. If he chooses...
-
Acquirer firm plans to launch a takeover of Target firm. The manager of Acquirer indicates that the deal will increase the free cash flow of the combined business by $13.6m per year forever. The beta...
Study smarter with the SolutionInn App