Which of the following is one of the two steps of the 2-step test for derecognition of receivables stated in IAS 39, International Accounting Standard 39, "Financial Instruments: Recognition and Measurement"?
a. The transferred assets have been isolated from the transferor such that the transferor and its creditors cannot access the assets.
b. The transferee has the right to pledge or exchange the transferred assets.
c. If the receivable transfer does not involve the transfer of substantially all the risks and rewards of ownership, then test to determine if the transferor maintains effective control over the assets through either an agreement to repurchase the assets before their maturity, or by the ability to cause the transferee to return specific assets.
d. Determine whether the receivable transfer involves a transfer of substantially all the risks and rewards of ownership of the receivable and, if so, account for the transfer as a sale of the receivable.
D
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When using a market-based transfer price, a decision must be made how price disputes will be handled
Indicate whether the statement is true or false
Brussels Products began its Belgian operations on January 1 . The following is the journal entry for the total payroll for January of €60,000: €40,000 paid to factory workers and €20,000 paid to marketing and administrative personnel:
a. Direct Labor Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 Salaries Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000 b. Salaries Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000 Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000 c. Work-in-Process Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000 Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000 d. Work-in-Process Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 Salaries Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000 e. Work-in-Process Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 Salaries Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000
What term is used to describe the process of directing operations to achieve the organization's goals and plans?
A) Supervising B) Control C) Directing D) Planning
The advantage of using available published reports as a source of market information is that it is
customized and inexpensive. Indicate whether the statement is true or false