Describe the revenue recognition principle

Assignment Help Financial Accounting
Reference no: EM132584038

Judy Schaeffer is getting up to speed on the new guidance on revenue recognition. She is trying to understand the revenue recognition principle as it relates to the five-step revenue recognition process.

Instructions

Question (a) Describe the revenue recognition principle.

Question (b) Briefly discuss how the revenue recognition principle relates to the definitions of assets and liabilities. What is the importance of control?

Question (c) Judy recalls that previous revenue recognition guidance required that revenue not be recognized unless the revenue was realized or realizable (also referred to as collectibility). Is collectibility a consideration in the recognition of revenue? Explain

Reference no: EM132584038

Questions Cloud

How much must deposit today to have a balance on january : If you have only $750 on January 1, 2010, what interest rate, compounded annually for 3 years, must you earn to have $1,000 on January 1, 2013?
Make schedule to compute the profit or loss to be recognized : Make schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2014, 2015, and 2016.
How can mental health diagnostic labels help or hurt : How can mental health diagnostic labels help or hurt? Be sure to support your answers through this week's reading. Your text discusses "Five Myths About Stress.
Write Paper on Write an Artiyo Humanistic Phycologist : Assignment - Write a Research Paper on "Write an Artiyo Humanistic Phycologist". Total 550 words and Type of referencing: APA format
Describe the revenue recognition principle : Briefly discuss how the revenue recognition principle relates to the definitions of assets and liabilities. What is the importance of control?
Briefly describe the five-step process : How are fair value measurement concepts applied in implementation of the five-step process? Briefly describe the five-step process.
Organizational designs can impact employee behavior : How different organizational designs can impact employee behavior in a positive and productive manner.
Write a Personal Statement for you to secure a scholarship : Write a Personal Statement for you to secure a scholarship. Total 550 words and Type of referencing: APA format
Construct statement of cash flows using the indirect method : Prepare statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities.The investments were sold for $210,000

Reviews

Write a Review

Financial Accounting Questions & Answers

  Calculate the percentage change in the prices relative

Determine the bond which has a largest change in its price as a result of these in its yield to maturity. Please explain with two or more sentences.

  Describe the factors that motivate firms to carry cash

How would you interpret a lambda of 1.00? Of 5.00? Of 0.75? Describe the factors that motivate firms to carry cash. Given that cash holdings typically some degree of return, how can cash holdings still imply an opportunity cost on the holder of cash?

  What is the expected value of wealth

What is the expected value of wealth, Is this person risk averse, risk neutral, or a risk seeker

  Uses the high-low method to analyze costs

Swanson and Associates presently leases a copy machine under an agreement that calls for a fixed fee each month and a charge for each copy made. Swanson made 7,000 copies and paid a total of $360 in March; in May, the firm paid $280 for 5,000 copies...

  Excluding investment expenses

Rich and Shauna Nielson file a joint tax return, and they itemize deductions. Assume their marginal tax rate on ordinary income is 25 percent. The Nielsons incur $2,400 in miscellaneous itemized deductions, excluding investment expenses.

  What arc the fixed costs in a monthly

Determine the Capital Recovery Factors for the calculations of the monthly equivalent fixed costs (per unit) of the 4 devices. What arc the fixed costs

  What is the payback period for this investment

Reinhart company would like to purchase a new machine for $5,000,000. The machine is expected to have a life of 5 years and a salvage value of $1,000,000. Annual maintenance costs will total $300,000, annual labor and material saving are predicted to..

  Record first months depreciation on delaney companys books

What is the nature of this lease to Delaney Company? What is the present value of the minimum lease payments? Record the lease on Delaney Company's books at the date of inception.

  What is the the present value that expect to receive

What is the the present value of $10,000 that you expect to receive in 10 years if the interest rate is 5% from years 0 to 5 and 7% from year 5 to 10?

  Consolidated net income attributable

On December 31, 2015, Neville reports revenues of $491,000 and expenses of $338,000 and Chamberlain reports revenues of $792,000 and expenses of $422,000. The parent figures contain no income from the subsidiary. What is consolidated net income attri..

  Multiple choices on variance analysis

Multiple choices on Variance analysis and the direct materials quantity variance

  Purchase of the hartford company on july 1

Springer Company had three intangible assets at the end of 2017 (end of the accounting year):

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd