Clearwater Hampers Is a Small British Company That Sells Luxury

question 119

Multiple Choice

Clearwater Hampers is a small British company that sells luxury food and drinks in various combinations in picnic hampers. Food and wine are seen as classic, fail-safe gifts in a market where present-buying is increasingly tricky. Corporate customers, both in the United Kingdom and abroad, are important to the business as well as are a number of department stores. Clearwater has had several orders for more than a quarter of a million dollars and prides itself on how much repeat business it does. The company's leading salesperson, Peter Austin, is placed in charge of an important territory divided on the basis of geography and sales potential. He classifies his customers according to the size of their average orders. Austin is a firm believer in the 80/20 principle. This means he believes:

• A) 80 percent of his effort will not result in sales.
• B) 20 percent of his time should be spent on prospecting and qualifying.
• C) 80 percent of his time should be spent in follow-up service.
• D) 20 percent of his customers will provide 80 percent of the sales.
• E) 20 percent of his time should be spent on paperwork.

Understand the new accounting standards for leases (AASB 16/IFRS 16) and their requirements.

Calculate lease receivable amounts at the inception of a lease.

Determine the present value of lease payments under finance lease agreements.

Identify the scope and exclusions of AASB 16/IFRS 16 regarding lease agreements.

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Definitions:

Epidermal Cell

A type of cell that makes up the epidermis, the outermost layer of the skin, serving as a protective barrier.

Cellulose

A complex carbohydrate or polysaccharide consisting of glucose units, forming the primary structural component of plant cell walls.

Lignin

A complex organic polymer deposited in the cell walls of many plants, making them rigid and woody, and playing a crucial role in the plant's structural support.

Hemicellulose

is a group of polysaccharides found in plant cell walls that work with cellulose and lignin to provide structural support.