Call Now to Set Up Tutoring:

(888) 888-0446

Create an account to track your scores
and create your own practice tests:

Create an Account Create a Practice Test

All CPA Financial Accounting and Reporting (FAR) Resources

92 Practice Tests Question of the Day Flashcards Learn by Concept

Want to review CPA Financial Accounting and Reporting (FAR) but don’t feel like sitting for a whole test at the moment? Varsity Tutors has you covered with thousands of different CPA Financial Accounting and Reporting (FAR) flashcards! Our CPA Financial Accounting and Reporting (FAR) flashcards allow you to practice with as few or as many questions as you like. Get some studying in now with our numerous CPA Financial Accounting and Reporting (FAR) flashcards.

Flashcards: Payables and Accrued Liabilities

Which of the following is true regarding purchases made from a seller that offers a discount for early payment?

The purchase is recorded as a credit to accounts payable as if the discount is going to be taken, under the gross or net method

The purchase is recorded as a credit to accounts payable as if the discount is going to be taken, if using the gross method

The purchase is recorded as a credit to accounts payable without regard for the discount, if using the net method

The purchase is recorded as a credit to accounts payable as if the discount is going to be taken, if using the net method

Report an Error Copyright Notice

Flashcards: Payables and Accrued Liabilities

Which of the following is true regarding purchases made from a seller that offers a discount for early payment?

Your answer:

The purchase is recorded as a credit to accounts payable as if the discount is going to be taken, under the gross or net method

Your answer:

The purchase is recorded as a credit to accounts payable as if the discount is going to be taken, if using the gross method

Your answer:

The purchase is recorded as a credit to accounts payable without regard for the discount, if using the net method

Correct answer:

The purchase is recorded as a credit to accounts payable as if the discount is going to be taken, if using the net method

Explanation:

Under the net method, a company initially records a purchase as if the discount is going to be taken. Recording the purchase includes a credit to accounts payable.

Flashcards: Payables and Accrued Liabilities

Glidell Company issues coupons for its products, which are redeemable at grocery stores. Each coupon entities the customer to $.65 off their purchase of Glidell's products. Additionally, Glidell reimburses retailers an additional $.05 per coupon. On July 1 of the current year, Glidell mailed out $1 million coupons to consumers, and expects 300,000 to be redeemed by their expiration date of December 31. Retailers can take up to 90 days to mail their coupons to Glidell. As of December 31, Glidell has made payments of $95,000 to retailers, and has 115,000 coupons waiting to be processed for payment. What amount should Glidell report as outstanding liability for coupons in its December 31 balance sheet?

$90,000

$210,000

$115,000

$175,000

Report an Error Copyright Notice

Flashcards: Payables and Accrued Liabilities

Your answer:

$90,000

Your answer:

$210,000

Your answer:

$175,000

Correct answer:

$115,000

Explanation:

Glidell must record an expense of $.70 ($.65 savings to customer + $.05 fee to retailers) for each of the 300K coupons it expects to be redeemed. 300K x $.70 = $210K. Glidell then subtracts the $95K it has already paid out.

DMCA Complaint

If you believe that content available by means of the Website (as defined in our Terms of Service) infringes one or more of your copyrights, please notify us by providing a written notice (“Infringement Notice”) containing the information described below to the designated agent listed below. If Varsity Tutors takes action in response to an Infringement Notice, it will make a good faith attempt to contact the party that made such content available by means of the most recent email address, if any, provided by such party to Varsity Tutors.

Your Infringement Notice may be forwarded to the party that made the content available or to third parties such as ChillingEffects.org.

Please be advised that you will be liable for damages (including costs and attorneys’ fees) if you materially misrepresent that a product or activity is infringing your copyrights. Thus, if you are not sure content located on or linked-to by the Website infringes your copyright, you should consider first contacting an attorney.

Please follow these steps to file a notice:

You must include the following:

A physical or electronic signature of the copyright owner or a person authorized to act on their behalf; An identification of the copyright claimed to have been infringed; A description of the nature and exact location of the content that you claim to infringe your copyright, in \ sufficient detail to permit Varsity Tutors to find and positively identify that content; for example we require a link to the specific question (not just the name of the question) that contains the content and a description of which specific portion of the question – an image, a link, the text, etc – your complaint refers to; Your name, address, telephone number and email address; and A statement by you: (a) that you believe in good faith that the use of the content that you claim to infringe your copyright is not authorized by law, or by the copyright owner or such owner’s agent; (b) that all of the information contained in your Infringement Notice is accurate, and (c) under penalty of perjury, that you are either the copyright owner or a person authorized to act on their behalf.

Send your complaint to our designated agent at:

Charles Cohn Varsity Tutors LLC
101 S. Hanley Rd, Suite 300
St. Louis, MO 63105

Or fill out the form below:

Do not fill in this field

Contact Information

* Full legal name

Company name

* Phone number

* Email address

Address

* Address1

Address2

* City

* State

* Zipcode

* Country

Complaint Details

* URL of copyrighted work (where your original material is located)

* Please describe the copyrighted work so that it may be easily identified

I am the owner, or an agent authorized to act on behalf of the owner of an exclusive right that is allegedly infringed.

I have a good faith belief that the use of the material in the manner complained of is not authorized by the copyright owner, its agent, or the law.

This notification is accurate.

I acknowledge that there may be adverse legal consequences for making false or bad faith allegations of copyright infringement by using this process.

* Signature (your digital signature is legally binding)

View Tutors

Steven
Certified Tutor

Florida International University, Bachelor of Science, Biology, General.

View Tutors

Nafis
Certified Tutor

University of Leipzig, Germany., Bachelor of Science, Physics. University of Pittsburgh-Pittsburgh Campus, Doctor of Philosop...

View Tutors

Carlyle
Certified Tutor

Northwestern University, Bachelor in Arts, Psychology.

Popular Subjects

Algebra Tutors in Atlanta, Algebra Tutors in Chicago, ISEE Tutors in New York City, Biology Tutors in Houston, ACT Tutors in San Francisco-Bay Area, Physics Tutors in Houston, LSAT Tutors in San Francisco-Bay Area, SSAT Tutors in Seattle, Chemistry Tutors in Phoenix, Calculus Tutors in San Francisco-Bay Area

Popular Courses & Classes

GRE Courses & Classes in New York City, MCAT Courses & Classes in Houston, GRE Courses & Classes in San Francisco-Bay Area, SAT Courses & Classes in Houston, GRE Courses & Classes in Houston, GMAT Courses & Classes in Boston, SAT Courses & Classes in Phoenix, GRE Courses & Classes in Denver, ACT Courses & Classes in Los Angeles, GMAT Courses & Classes in Houston

Popular Test Prep

LSAT Test Prep in Miami, GRE Test Prep in Denver, ISEE Test Prep in Atlanta, GMAT Test Prep in Miami, GMAT Test Prep in Houston, ISEE Test Prep in Boston, LSAT Test Prep in Phoenix, ACT Test Prep in Dallas Fort Worth, MCAT Test Prep in Dallas Fort Worth, ISEE Test Prep in Denver

HIGH SCHOOL

GRADUATE SCHOOL

K-8

Search 50+ Tests

math tutoring

science tutoring

foreign languages

elementary tutoring

other

Search 350+ Subjects

Create an account to track your scores
and create your own practice tests:

All CPA Financial Accounting and Reporting (FAR) Resources

Flashcards: Payables and Accrued Liabilities

Flashcards: Payables and Accrued Liabilities

Flashcards: Payables and Accrued Liabilities

Flashcards: Payables and Accrued Liabilities

Report an issue with this question