Receivables supported by oral or informal promises to pay.

These are not supported by formal promissory notes

Receivables supported by written or formal promises to pay in the form of promissory notes.

Some of this are supported by postdated checks

Receivables arising from loans extended by financial institutions, such as banks, financing companies, and lending institutions

Other than notes receivables, it is also supported by promissory notes and are generally backed by collateral securities or postdated checks

For non-financial institutions, receivables are classified into

Receivables arising from the sale of goods or services in the ordinary course of business

Receivables arising from other sources, other than sale of goods or services

Classified as current assets when they are expected to be realized in cash within the normal operating cycle or one year, whichever is longer

Classified as current assets only when they are expected to be realized in cash within one year

When or how long does trade receivables expected to be realized in cash?

When or how long does non-trade receivables expected to be realized in cash?

In trade receivables what include?

True or false

The normal operating cycle of an entity is the time between the acquisition of ASSETS for processing and their realization in RECEIVABLES

When the entity's normal operating cycle is not clearly identifiable, it is assumed to be

True or false

Financial institutions NEED TO classify their receivables as trade or non-trade receivables

Statement of financial position of financial institutions is presented based on?

Receivables expected to be realized -------------------- are disclosed in the notes?

Trade and non-trade receivables that are currently collectible are (combined, separated) and presented on (SFP, SCI) in a single line item as "Trade and other receivables"

The breakdown is disclosed in the notes

A basic accounting concept is that An ASSET should NEVER have a CREDIT balance and a LIABILITY should NEVER have DEBIT BALANCE .

When such instance occurs, what activity needed to be done to eliminate the abnormal balance prior to the preparation of F.S?

Receivables arising from advances to officers and employees, advances to suppliers, and advances to affiliates

Receivables arising from income earned but not yet collected , such as interest income, dividend income, be like

Receivables from reimbursable deposits paid to cover potential damages or losses, deposits for guarantee of performance or payment and deposits for returnable items (crates, containers and etc.)

Receivables from insurance companies for casualties, sustained, defendants under suit, government agencies for refundable taxes, and other remittances, common carriers for damaged or lost goods and suppliers for returned or damaged goods

Credit balances in customer's accounts are presented as ------ and not offset against receivables

Debit balances in supplier's accounts are presented as ------ and not offset against receivables

In daily transactions, customers' accounts in the subsidiary ledger are ----- for all cash receipts regardless of whether the cash receipt is for the collections of recoded receivables or as an advance payment for the future delivery of goods

In daily transactions, suppliers' accounts in the subsidiary ledger are ----- for all cash paymentsis for the settlement of recorded payables or as advance payment for future purchase of goods.

Customers' accounts (account receivable) may at times have ----- resulting from overpayments, advance payments or errors

Suppliers' accounts (account payable) may at times have ----- resulting from overpayments, advance payments or errors

When a customer's account is credited for an amount exceeding the outstanding debit balance, a ------- balance would result

When a supplier's account is debited for an amount exceeding the outstanding credit balance, a ------- balance would result

Advances to suppliers

Advances from customers

Advances from customers

Advances to suppliers is a part of ?

In a typica audit engagement, the auditor performs an analytical procedure called "----" whereby accounts are scanned for abnormal balances

What we called to an audit utilizing, that identifies abnormal balances when data from client's database is uploaded to the auditor's computer?

these are adjusted before further audit procedures are perfomed

Receivabls are initially recognized at

Trade receivables that ------ are measured at their TRANSACTION PRICE accordance with

Amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customers, excluding amounts collected behalf of third parties (ex. some sales taxes)

In transaction price, we include or exlude the amounts collected behalf of third parties?

PFRS ​ ----- allows the ------ ​ of the amount of consideration if it is due ------- from the date of transfer of the goods or services

Trade receivable is recognized when the entity has right consideration that is

A right to consideration is unconditional if ?

it is considered when determining the timing of transfer of control over the goods sold

Under this, ownership over the goods sold is transferred to the buyer upon shipment.

Under this, ownership transferred only when the buyer receives the goods.

Accordingly, sales and accoutns receivables are recognized on shipmanet date

Accordingly, sales and accounts receivables are recognized when the buyer receives the goods

FOB stands for

means the seller has paid the freight in advance before shipment

This does not mean that the seller is the one who is supposed to pay for the freight

Means the freight is not yet paid upon shipment

The carrier will collect the shipping costs from the buyer upon delivery

This does not mean that the buyer is the one who is supposed to pay for the freight

What is the rule about the shipping costs?

In the choices when special accounting arises in terms of the sale of contract?

In the choices when no special accounting arises in terms of the sale of contract?

Why there is no special accounting is necessary if the term of the sales contract is either

FOB Shipping Point, Freight Collect

FOB Destination, Freight Prepaid

The buyer owns the goods being shipped but the seller already paid the shipping costs

The seller owns the goods being shipped but the carrier will be collecting the shipping costs from the buyer

Given to encourage orders in large quantities

Given to avoid frequent changes in catalogs

Given to alter prices for different quantities purchased

Given to hide the true invoice price from competitors

Given to encourage prompt payment

Cash discounts​ are deducted from the​ ​​ ------- when determining the -------- within discount period

Deducted from the list price when determining the invoice price

Deducted from the invoice price when determining the net amount collectible within the discount period

It is not recorded by either the buyer or seller

It is accounted or recorded for separately

These are two accounting treatments for what discounts?

one is in accordance with PFRS 15 revenue from contracts with customers and the other one is in accordance with traditional GAAP

Trade Discounts​ are deducted from the​ ​​ ------- when determining the --------

ACCOUNTING FOR CASH DISCOUNTS:

Does entity REQUIRED or OPTIONAL to estimate the amount to which it expects to be entitled in exchange for transferring the promised goods or service, when the consideration includes a variable amount?

This treatment is according to?

ACCOUNTING FOR CASH DISCOUNTS:

True or false

The entity assess whether there is a high probability that the estimated amount WILL SIGNIFICANTLY change once the uncertainty is resolved

This treatment is according to?

ACCOUNTING FOR CASH DISCOUNTS:

The entity recognizes revenue ------- the estimated amount when it satisfies its performance obligation in the contract

This treatment is according to?

ACCOUNTING FOR CASH DISCOUNTS:

Under -----, cash discounts are accounted of what two method?

Under this method, account receivable and sales are initially recorded at amounts gross of cash discounts

Under this method, cash discounts are recorded only when they are taken by the buyer

Under this method, Account receivables and sales are initially recorded at the amounts net of cash discounts.

Under this method, cash discounts are recorded only when they are not taken by the buyer

Under this method, cash discounts taken by the buyer are not accounted for

Under this method, cash discounts not taken by the buyer are not accounted for

Under this Method, Cash discounts taken by the buyer are debited to the sales discounts

Under this Method, Cash discounts not taken by the buyer are credited to the discounts forfeited

Under this Method, Sales discounts that are debited is deduction from sales when computing for net sales

Under this Method, Sales discounts forfeited that are credited is included as part of other income or finance income

Net Method:

AR recorded at net amount are adjusted for sales discounts that have expired, however sales are (adjusted, not adjusted) for discounts not taken