Quiz 07.30 – T/F CECL Approach and Credit Loss Recognition
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Credit losses are recognized under the CECL approach only when it is probable that the receivable cannot be collected.
Credit losses are recognized under the CECL approach only when it is probable that the receivable cannot be collected.
The CECL approach under U.S. GAAP recognizes bad debts only for expected losses that are more than a year away, and when a receivable’s credit quality has declined.
IFRS’s ECL approach only acknowledges expected credit losses when a receivable has undergone credit quality deterioration and the loss is predicted to occur after one year in the future.
IFRS does not recognize bad debts associated with accounts receivable.
Which element is NOT an important part of an internal control system for cash disbursements?
What are the objectives defined by COSO’s internal control framework?
What is the definition of compensating balances?
How should restricted cash that is not available for current operations be reported on the balance sheet?
What is a correct statement about how cash is reported according to IFRS?
If a customer agrees to keep a product with a discount due to an error on the company’s part, how should the reduction be recorded according to Gershwin Wallcovering Inc.?