Wiseman Ltd Is Offering the Following Conditions to Customers Who

question 6

Multiple Choice

Wiseman Ltd is offering the following conditions to customers who purchase goods with a minimum total of $5 000 in the one transaction:
-Initial deposit of 25% of purchase price.
-Immediate delivery of goods purchased.
-Interest rate of 10% p.a. charged on the outstanding balance.
-Repayment of the balance (including the interest) over 36 equal monthly instalments.
-Wiseman Ltd retains legal title to the goods until the final monthly payment has been made.
Wiseman Ltd would recognise revenue as follows:

• A) recognise the whole amount of revenue at purchase date.
• B) recognise all revenue as it is received
• C) recognise interest as it is received (monthly) and recognise the revenue on the sale of the goods at purchase date.
• D) recognise interest as it is received (monthly) and recognise the revenue on the sale of the goods once the final payment has been received.

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Definitions:

Foreign Currencies

The currencies used in countries other than one's own, involved in international trade and investment.

U.S. Imports

refer to goods and services purchased from other countries by the United States, contributing to its economy's supply side.

Foreign Exchange Markets

Platforms for trading national currencies against one another, critical for international trade and finance.

U.S. Exports

Goods, services, and commodities sent from the United States to other countries as part of international trade.