Determining the accrual basis of accounting

Reference no: EM13954220

Accrual Basis of Accounting

For the following situations, indicate the date on which revenue would be recognized, assuming the accrual basis of accounting.

a. On June 10, a customer orders a product over the phone. The product is shipped to the customer on June 14, and the customer pays the amount owed on July 10.

b. On March 15, a law firm agrees to draft a legal document for a client. The docu- ment is completed and delivered to the client on April 5, and the client pays the amount owed on May 2.

c. A homeowner signs a contract on August 6 to have a company install a central air conditioning system. The work is completed on August 30, and the home- owner pays the amount owed on September 25.

Reference no: EM13954220

Questions Cloud

When negotiating objective criteria and procedures : What are the three basic points to remember when negotiating objective criteria and procedures? Explain what is meant by each of the three points.

When should supervisors use groups for decision making : When should supervisors use groups for decision making? When should they make the decisions themselves? Also, what are some of the advantages of using groups when making decisions?

Strident property services : Case study: Strident property services. Journal of Business Case Studies, 8(6), 565. Discuss how group dynamics contribute to the situation described in this case. Explain your reasons with references to the background readings, PowerPoint presentati..

Connect the dots using straight lines : How many rectangles are there in a line of fifteen squares where sides are lined up with the adjacent sides touching the entire length of the side?

Determining the accrual basis of accounting : For the following situations, indicate the date on which revenue would be recognized, assuming the accrual basis of accounting.

What are the pros and cons of starbucks : For Starbucks, how is the Chinese market different from the U.S. market? What are the pros and cons of Starbucks’ choosing China as its priority in its growth plan? Based on the cultural differences between the Chinese and U.S. markets, what recommen..

Reduce birth rates, through its one-child policy : Many people outside of China believe that the country's effort to reduce birth rates, through its one-child policy, does not justify its methods. Do you agree? Can you think of any future, unintended consequences for China as a result of adopting ..

Human resource plan and cost and budget estimate : A major company has agreed to participate in the citywide Adopt-a-School program. You have been asked to lead the Book Bag drive sponsored by this company. Describe the resource requirements for the project and the roles and skills required of each t..

What kind of method should he use : To confirm whether composition is right or not, what kind of method should he use? (He wants to analyze without destruction of samples. Ferroelectrcs (Bi,La)4Ti3O12 is an insulator.

User Account

All Pages