Answer: Please see answer in explanation column
Explanation:
a) Journal entry to write off an uncollectible amount.
Date Account Debit Credit
Jan 31st Allowance for doubtful accounts $2,100
Accounts receivable—C. Green $2,100
b) Journal to record recovery of the bad debt.
Date Account Debit Credit
Mar 9 Accounts receivable—C. Green $1,600
Allowance for doubtful accounts $1,600
c) Journal to record payment on account.
Date Account Debit Credit
Mar 9 Cash $1,600
Accounts receivable—C. Green $1,600
Answer: This chart demonstrates that the marginal cost initially decreases as production increases.
Marginal Cost refers to the cost of producing an additional unit of a good. As production increases, marginal costs will initially decrease.
In the short run, factors of production like capital are fixed. Only labor is variable and varies with the number of units produced. Initially, employing more labor results in better productivity and help in decreasing the marginal costs. However, as more units of labor are employed, labor become less productive and the law of diminishing marginal returns sets in. Hence the marginal cost curve begins to rise.
Answer:
the answer is A
Explanation:
i just took the test
B. a hazard.
C. a risk.
D. a premium
Answer:
c. a risk
Explanation:
i got it right on the test
b. Collision
c. Comprehensive physical damage
d. No-fault insurance
Joe Johnson needs surgery for appendicitis. Which part of his basic insurance coverage should help pay for this surgery?
a. Hospital Expense Insurance
b. Surgical Expense Insurance
c. Physician Expense Insurance
d. Major Medical Expense ...
Answer: True
A bank line of credit is a prearranged loan amount that you can access by writing specific checks
Explanation:
A line of credit (LOC) refers to a type of loan extended to an individual, organizations or government which establishes the maximum loan amount a customer can borrow. It is a form of arrangement between a financial institution and its customer. It is an open-end credit account that enables borrowers to spend money, repay it, and spend it again. A customer or borrower can access funds from the line of credit in agreement with the maximum amount that is agreed upon because he or she must not exceed the limit. The loan on the line of credit must be paid back within a specified time and at a specified interest rate. It allow a borrower to write checks (drafts) in order to access the loan.
Note: Use IFRS 9 as the IFRS source.
Answer:
Financial assets are instruments that represent a claim to the economic benefits of an entity. They can be categorized into various classes based on their nature and purpose. Two common categories of financial assets are "passive investments" and "loans and receivables." I'll explain each category and their measurement under both IFRS (using IFRS 9) and ASPE (Accounting Standards for Private Enterprises).
1. Passive Investments:
Passive investments are financial assets that an entity holds to earn returns on the investment, such as dividends, interest, or capital appreciation. They are typically acquired with the intent of holding them for the long term rather than actively trading them.
Measurement under IFRS 9:
Under IFRS 9, passive investments are classified into two main categories:
a. Fair Value Through Other Comprehensive Income (FVOCI): Passive investments can be designated at initial recognition to be measured at fair value through other comprehensive income. Changes in fair value are recognized in other comprehensive income, and only accumulated gains or losses are recognized in the income statement upon derecognition or impairment.
b. Fair Value Through Profit or Loss (FVTPL): Alternatively, entities can choose to measure passive investments at fair value through profit or loss. Changes in fair value are recognized directly in the income statement.
Measurement under ASPE:
Under ASPE, the equivalent category to FVOCI is "Available-for-sale financial assets," and the equivalent to FVTPL is "Fair value through profit or loss." The measurement and recognition principles are generally similar to IFRS, with some differences in terminologies and specific requirements.
2. Loans and Receivables:
Loans and receivables are financial assets that involve contractual rights to receive cash or another financial asset from another entity. They arise from lending money, providing goods or services on credit, or holding accounts receivable.
Measurement under IFRS 9:
Under IFRS 9, loans and receivables are initially measured at their transaction price, which usually includes transaction costs. Subsequently, they are measured at amortized cost using the effective interest rate method, unless they are determined to be impaired.
Measurement under ASPE:
ASPE has a category called "Loans and receivables," which is similar to IFRS's classification. Loans and receivables under ASPE are also initially measured at the transaction price, including transaction costs, and subsequently measured at amortized cost using the effective interest rate method, unless they are impaired.
It's important to note that while both IFRS and ASPE have similarities in the classification and measurement of financial assets, there might be some differences in terminology, presentation, and specific requirements. Additionally, the standards and their interpretations may change over time, so it's crucial to refer to the most up-to-date versions of IFRS 9 and ASPE for accurate information.
Explanation:
Final answer:
The different categories of financial assets under IFRS and ASPE are financial assets at fair value through profit or loss, financial assets at amortized cost, and financial assets at fair value through other comprehensive income.
Explanation:
Financial assets are resources that hold monetary value and can be classified into different categories based on their characteristics and purpose. Under International Financial Reporting Standards (IFRS) and Accounting Standards for Private Enterprises (ASPE), financial assets are categorized into three main groups: financial assets at fair value through profit or loss, financial assets at amortized cost, and financial assets at fair value through other comprehensive income.
Financial assets at fair value through profit or loss: These assets are held for trading purposes or are designated as such by the entity. They are measured at fair value, with changes in fair value recognized in profit or loss. Financial assets at amortized cost: These assets are held to collect contractual cash flows and are measured at amortized cost using the effective interest method. They include loans, receivables, and held-to-maturity investments.
Financial assets at fair value through other comprehensive income: These assets are neither held for trading nor held to collect contractual cash flows. They are measured at fair value, with changes in fair value recognized in other comprehensive income.
Under IFRS, the measurement of financial assets is primarily based on their classification. IFRS 9 provides guidance on the classification, measurement, and impairment of financial assets. ASPE, on the other hand, follows a similar approach to IFRS but with some differences in terminology and specific requirements.
Learn more about categories of financial assets and their measurement under ifrs and aspe here:
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Answer: Harvey company will record the equipment at $14,700 is its books.
We usually record equipment at the actual price at which it was bought. Even though Harry company was willing to pay only $13,000, it actually went ahead and paid $14,700 to purchase the equipment.
We don’t consider the retail price here, since Harvey company did not buy the equipment from the retail market.
In the advertisement, Carrey Company probably put a value of $19,000 (by considering the retail rate) to see the market response to buy the at that price. So, we don’t consider that either.