The contra revenue account that represents the reduction in the amount paid by a credit customer if payment is made within a specified period of time is known as which of the following:

Q: The revenue recognition principle states that all types of incomes should be recorded or recognized…

A: We have the following question: The revenue recognition principle states that all types of incomes…

Q: The revenue recognition principle dictates that revenue be recognized in the accounting period…

A: The revenuerve recognition principle states that every business organization should recognize the…

Q: The accounts of customers who have not yet made payment for the goods or services are called: O a.…

A: Accounting indicates to a system which helps the corporation in identifying the daily…

Q: when a company receives a deposit from a customer to protect itself against nonpayment for future…

A: Revenue is the amount of money created by typical business operations and is determined by…

Q: The length of time from the payment for purchases of raw materials until the collection of account…

A: The length of time is calculated in days

Q: According to ASC 606, how should the $25 Referral Credit be recorded in Runway’s Income Statement,…

A: ASC 606: it is the revenue recognition standard for all types of business that enters into the…

Q: pre-approved amount of open-end credit, based on a borrower's ability to pay, is called a(n) _____.…

A: There are different types of credit available in the market and it all depends on the agreement…

Q: Indicate whether a debit or credit decreases the normal balance of each of the following accounts.…

A: Normal balance:   Normal balance refers to the excess of amount on one side, over the amount on the…

Q: Identify whether a debit or credit results in the indicated change for each of the following…

A: Unearned Revenue:   Unearned Revenue refers to the revenue earned by the company but the goods or…

Q: According to ASC 606, how should a referral credit be recorded in your financial statement, as a…

A: ASC-606 solely deals with the Concept of Revenue Recognition and in order to bring uniformity in…

Q: Briefly describe the guidelines provided by GAAP for the recognition of revenue by a franchisor for…

A: Franchise arrangement and performance obligation:   In a franchise transaction, the franchisor has…

Q: Analyze the statement given then choose if the effect on account will Increase or Decrease it.…

A: The accounting equation is the basic principle of accounting that is used to prepare a balance…

Q: A company that provides a service or product to a customer on credit has an __________ from that…

A: A goods or service sold on credit is treated as assets of the business as these are customer…

Q: Question  The average collection period is the average amount of time that elapses from a credit…

A: Average Collection Period Average collection period is time allowed by the company to its debtors…

Q: The ending balance in the account Deferred Revenues (or Unearned Fees) * ?should report which of the…

A: Deferred revenue seems to be payments from a consumer for upcoming products or services. Since the…

Q: At what rate interest on Calls –in-Arrears can be charged by a company according to table A.

A: Answer: Calls-in-arrears are nothing but the situations in which the stockholders refuse to pay the…

Q: Deferred revenues represent liabilities recorded when cash is received from customers in advance of…

A: Adjusting entries:Adjusting entries are the journal entries, which are recorded at the end of the…

Q: When recognizing revenue, a company has a performance obligation when it agrees to receives cash…

A: Solution: When recognizing revenue, a company has a performance obligation when it agrees to…

Q: Which type of checking account pays interest on the mean balance of the account during a particular…

A: The checking account are important part of banking system. A checking account is highly liquid…

Q: What is the effect of the error in the net income of the current period and in subsequent period?

A: Payment made to supplier is debited for decrease in balance as accounts payable which is liability…

Q: When converting from cash basis to accrual basis accounting, which of the following adjustments…

A: Cash receipts from customers under cash basis of accounting includes receipts collected from…

Q: For each account, indicate whether it appears in the general ledger or the subsidiary ledger Prepaid…

A: We have to indicate whether Prepaid Rent appears in general ledger of subsidiary ledger.

Q: When an account is written off using the allowance method, account receivable is ?

A: The allowance method usually sets aside a reserve for bad debts that are to be incurred in the…

Q: When recognizing revenue, a company has a performance obligation when it agrees to a. perform a…

A: A performance obligation is satisfied when the company delivered goods or performed services to…

Q: Many companies use contra-revenue accounts to describe a reduction in Service Revenue (also Sales…

A: Solution concept The sales account includes the sales made in cash and credit both While calculating…

Q: For VAT and Percentage transactions, state when will be the deadline for the remittances

A: VAT is value added tax and it is indirect tax which means tax is paid by consumer of goods or…

Q: The practice of recording advance payments from customers as a liability is an example of applying…

A: Under the Cash Basis of Accounting, revenue is considered only when the actual amount is received…

Q: If a company usually sells its accounts receivables, it recorda any factoring commissions as a(n)

A: The Answer

Q: Allowance for Uncollectible Accounts is a contra asset account, which means that its normal balance…

A: The questions here pertain to contra asset accounts. Note that contra asset accounts are those…

Q: Identify whether a debit or credit results in the indicated change for each of the following…

A:

Q: The time period during which the invoice is paid is called: A. Rate of discount B. Discount period…

A: Invoice refers to a document representing the information about the amount owed by customers through…

Q: In the following liabilities, the payee is known, however, the amount may have to be estimated.…

A: provision should be created for all the certain liabilities

Q: l amount from an account in which you want to decrease the balance, you use the __________________…

A: The safe withdrawal rate method involves balancing comfotable living without depleting retirement…

Q: A company's expected receipts from sales and planned disbursements to pay bills is commonly called…

A: Here Is The Answer :

Q: According to U.S. GAAP, when should revenue be recognized?a. When cash is received from the…

A: Revenue: It refers to money earned by the business from selling its goods and services to the…

Q: Prepaid Expense has the account type of Checking with a starting balance of

A: The Answer For the question

Q: If a credit sale is made to a New customer, and the amount due is received before the year ends,…

A: Sales made on cash or credit both are recorded as sales from the beginning of the transaction and…

Q: When a company pays its rent in advance, its balance sheet will refl ect a reduction in: A . assets…

A: A balance sheet is a financial statement that reports a company's assets, liabilities, and…

Q: The payment of supplier's account is debited to accounts receivable. What is the effect of the error…

A: Ans. The error while passing journal entries leads to overstated or understate of profits.

Q: An “Accounts Receivable Customer Balances” report shows revenues by customer for a specified date…

A: Account receivable arises when we sell goods on credit and account receivable customer balances…

Q: Explain the revenue recognition process when a performance obligation is satisfied over time…

A: Under the IFRS 15- Revenue from Contracts with Customers, a framework is set for revenue recognition…