Question: When should liabilities for each of the following items be recorded on the books of an ordinary business corporation? (a) Acquisition of goods by purchase

When should liabilities for each of the following items be recorded on the books of an ordinary business corporation?
(a) Acquisition of goods by purchase on credit.
(b) Officers’ salaries.
(c) Special bonus to employees.
(d) Dividends.
(e) Purchase commitments

Step by Step Solution

★★★★★

3.26 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a A liability for goods purchased on credit should be recorded when title passes to the purchaser If ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

51-B-A-L (443).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

The balance sheet of Reflections Book Shop at April 30, 2021, is as follows: Charles Dryfuss, the owner of the book shop, admits that he is not an accountant. In fact, he couldn?t get the balance...

When should liabilities for each of the following items be recorded in the accounts of the business entity? (a) Acquisition of goods by purchase on credit (b) Salaries (c) Annual bonus paid to...

How would each of the following items be recorded on a bank reconciliation? Next to each item, record the correct letter from this list: (a) Increase to bank balance, (b) Decrease to bank balance,...

For each of the following items a through g, indicate whether its amount (1) Affects the bank or book side of a bank reconciliation, (2) Represents an addition or a subtraction in a bank...

PART 2: Provisions and contingent Liabilities Comprehension questions How is present value related to the concept of a liability? Define (a) a contingency and (b) a contingent liability. What is the...

Recognising a provision LO4 When should liabilities for each of the following items be recorded in the accounts of the business entity? Acquisition of goods by purchase on credit Salaries Annual...

When should liabilities for each of the following items be recorded on the books of a company? (1) Warranty, (2) Acquisition of goods by purchase on credit, and (3) Profit-sharing bonus.

The test statistic is (Type an integer or a decimal. Do not round.) The critical value is (Round to three decimal places as needed.) State the conclusion. Ho. There sufficient evidence to warrant...

When should liabilities for each of the following items be recorded on the books of an ordinary business corporation? (a) Acquisition of goods by purchase on credit. (b) Officers salaries. (c)...

When and why should liabilities for each of the following items be recorded on the books of an ordinary business corporation? Purchase of goods on account. Upon recieving the goodsOfficers salaries...

When should liabilities for each of the following items be recorded on the books of an ordinary business corporation? (a) Acquisition of goods by purchase on credit. (b) Onerous contract. (c) Special...

Concrete has a coefficient of linear expansion of about 8 10-6 /C. If you were to build a bridge from concrete panels, you would have to leave a gap between them so that the concrete panels would...

Assume that as of today we have an annualized three-year interest rate of 12 percent, while the current two-year interest rate is 9.5 percent. Given this information, estimate the one-year forward...

\ table [ [ Accounts , Debits,Credits ] , [ Cash , $ 1 2 , eee, ] , [ Accounts Receivable, 6 , 4 9 0 , ] , [ Supplies , 2 , 4 0 0 , ] , [ Equipment , 1 8 , 4 0 8 , ] , [ Accumulated Depreciation,,$ 6...

A Comprehensive Accounting Cycle Problem On 1 December 2009, Yumna Mikayla formed a corporation called Sunshine Equipment Rentals. The new corporation was able to begin operations immediately by...

3. Calculate pH of 0.03 M solution of potassium hydrogen phthalate (KHP). pKi= 2.95, pKr-5.41

The table below gives values of a twice- differentiable function f and its first derivative f' for selected values of x. Let g be the function defined by g (x) = f (2x x). - -3 3 4 f (x) 5 -1 2 7 f'...

IQ and GPA, connected? The scatterplot shows the school grade point average (GPA) on a 12-point scale and the IQ score for all 78 seventh-grade students in a rural midwestern school. Describe the...

How should a franchisor account for continuing franchise fees and routine sales of equipment and supplies to franchisees?

What changes are made in the franchisors recording of the initial franchise fee when the franchise agreement: (a) Contains an option allowing the franchisor to purchase the franchised outlet, and it...

Case Study For this assignment, following APA style, answer as comprehensively as possible the questions after each case summary. Please read the closing case BETHESDA MINING at the end of chapter 8...

Pronghorn Corporation's adjusted trial balance contained the following asset accounts at December 31, 2020: Cash $3,300; Treasury Bills (with original maturity of three months: $5,100; Land $46,500;...

Financial Management 2019 MAY.[14] A proforma cost sheet of a company provides the following particulars : C Elements of Cost Materials 40% Direct Labour 20% Overheads 20% The following further...