Question

1. Which of the following is a situation indicating that control over goods or services have transferred at a point in time?

a.) Customer accepts delivery and installation of an alarm system

b.) Contractor constructing an office building

C.) A warranty service that provides support for a period of two years

D.) Customer purchases season tickets to the wolves foot ball team

2. On October 1^st, Frank’s accounting service borrows $75,000 from national bank on a $75,000, 3-month, 6% note. What entry must Frank’s accounting make on December 31 before financial statements are presented

A.) Interest expense                               1,125

   Interest payable                                            1,125

B.) Interest expense                                1,125

    Notes payable                                                1,125

C.) Interest payable                                 1,125

   Interest expense                                           1,125

D.) Interest expense                               4,500

Interest payable                                             4,500

3. Canadian accountants rely on ______________ to help them apply the conceptual framework to specific situations

A) the Canadian Business Corporations Act

B) identifiable rules

C) the rules of the Income Tax Act

D) professional judgment

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Answer 1
a.) Customer accepts delivery and installation of an alarm system.
Answer 2	Amount $	Note
Note amount	75,000.00	A
Interest rate	6%	B
Annual Interest	4,500.00	C=A*B
Interest for 3 months (Oct to Dec)	1,125.00	D=C/12*3
So correct answer is option a.
Answer 3
D) professional judgment.