Question

If a receivable is individually significant but is not proven to be impaired, the receivable ......

If a receivable is individually significant but is not proven to be impaired, the receivable ...
a. No need to calculate impairment
b. Declining value of 0 because there is no objective evidence
c. Calculated with decreases together with collective receivables
d. Calculated using an aging schedule

Homework Answers

Answer #1

Answer is option C

c. Calculated with decreases together with collective receivables

The receivables which are individually significant in nature are considered to be separately for impairment purpose and if they are impaired they are recognized by the company. Ifimpaired, the company recognizes it. However, if receivables individually assessed are not proven to be impaired should be included with a group of assets having similar credit-risk characteristics and are assessed collectively for impairment.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Route Canal Shipping Company has the following schedule for aging of accounts receivable:      Age of...
Route Canal Shipping Company has the following schedule for aging of accounts receivable:      Age of Receivables April 30, 20X1 (1) (2) (3) (4) Month of Sales Age of Account Amounts Percent of Amount Due April 0–30 $ 176,890 _______ March 31–60 126,350 _______ February 61–90 151,620 _______ January 91–120 50,540 _______ Total receivables $ 505,400 100%    a. Calculate the percentage of amount due for each month.         b. If the firm had $1,596,000 in credit sales over...
Answer all questions please 19)Which of the following is a true statement about a company that...
Answer all questions please 19)Which of the following is a true statement about a company that uses the allowance method? a.The net realizable value of its accounts receivable is shown on the balance sheet. bUncollectible Accounts Expense is recorded when a receivable is written off c.Uncollectible accounts are not recorded until the amount becomes significant. d. None of these answer choices are correct. 22) Which of the following best describes the percent of receivables method? a. Credit sales approach b....
On Dec 31, 2016,RawdaCompany hadaccounts receivable of $750,000and allowance fordoubtful accounts that had a debit balance...
On Dec 31, 2016,RawdaCompany hadaccounts receivable of $750,000and allowance fordoubtful accounts that had a debit balance of $10,000.The company uses an aging schedule(agingmethod)to estimateits uncollectible accounts as shown in the following table: # of Days Outstanding Amounts Estimated % Uncollectible 0-30 $     200,000 2% 31-60 200,000 4% 61-90 200,000 6% Over 90 150,000 8% Requirements: A. What is therequired balance for theallowance ofdoubtful accounts on Dec 31, 2016? B. What is the net realizable value of the accounts receivable on...
22. The cost of an asset is $1,110,000, and its residual value is $300,000. Estimated useful...
22. The cost of an asset is $1,110,000, and its residual value is $300,000. Estimated useful life of the asset is five years. Calculate depreciation for the second year using the double-declining-balance method of depreciation (room on next page). A) $222,000 B) $162,000 C) $266,400 D) $324,000 23. If an asset is disposed of when it is fully depreciated and has no residual value, the business does not need to make a journal entry because the book value is zero....
Problem 8-4A Rigney Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced...
Problem 8-4A Rigney Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. Calculate the total estimated bad debts based on the below information Number of Days Outstanding Total 0–30 31–60 61–90 91–120 Over 120 Accounts receivable    286,200 94,800 60,800 55,400 41,400 $33,800 % uncollectible      2% 5% 6% 9% 21% Estimated Bad debts $ $ $ $ $ $ (b) Prepare the year-end adjusting journal entry...
Please provide your answers to the below questions along with your rationale for your answer. Which...
Please provide your answers to the below questions along with your rationale for your answer. Which of GAAPs relates to the following policy? The company owner’s personal receivables will not appear on the company's balance sheet. a. Going concern b. Conservatism c. Economic Entity d. Objective evidence A company has $120,000 assets and $60,000 liabilities. In this case, how much of these assets are met with net assets? a. 30% b. 50% c. 70% d. 60% Which following statements is...
The mean number of English courses taken in a two–year time period by male and female...
The mean number of English courses taken in a two–year time period by male and female college students is believed to be about the same. An experiment is conducted and data are collected from 25 males and 13 females. The males took an average of 4 English courses with a standard deviation of 0.8. The females took an average of 2.5 English courses with a standard deviation of 1.0. Set up a hypothesis test to determine whether this difference is...
1. Which of the following is considered cash?             a.   120-day Treasury bill             b.   Money...
1. Which of the following is considered cash?             a.   120-day Treasury bill             b.   Money market checking accounts             c.   short term investments             d.   Receivables 2. Deposits held as compensating balances a.   are usually some percentage of the committed amount. b.   if legally restricted and held against short-term credit may be included as cash. c.   if legally restricted and held against long-term credit may be included among current assets. d.   none of these. 3. Cash that is restricted...
You may need to use the appropriate technology to answer this question. Consider the following hypothesis...
You may need to use the appropriate technology to answer this question. Consider the following hypothesis test. H0: μd ≤ 0 Ha: μd > 0 (a) The following data are from matched samples taken from two populations. Compute the difference value for each element. (Use Population 1 − Population 2.) Element Population (1) Population (2) Difference 1 21 18 ? 2 28 27 ? 3 18 15 ? 4 20 18 ? 5 26 25 ? (b) Compute d. (c)...
You may need to use the appropriate technology to answer this question. Consider the following hypothesis...
You may need to use the appropriate technology to answer this question. Consider the following hypothesis test. H0: μd ≤ 0 Ha: μd > 0 (a) The following data are from matched samples taken from two populations. Compute the difference value for each element. (Use Population 1 − Population 2.) Element Population Difference 1 2 1 21 19 2 28 28 3 18 17 4 20 18 5 26 26 (b) Compute d. (c) Compute the standard deviation sd. (d)...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT