Forthcoming guidance on revenue recognition

Assignment Help Financial Accounting

Reference no: EM131260935

Under the FASB’s and IASB’s forthcoming guidance on revenue recognition, a contract must have which of the following characteristics in order to be judged as persuasive?

a. It must have commercial substance.

b. The parties to the contract must have approved it and be committed to perform their respective actions.

c. Rights with respect to the contract are identifiable.

d. The terms of payment must be identifiable.

e. All of the above.

Reference no: EM131260935

Questions Cloud

Salvage value using straight-line method : On May 1, 2014, ABC corporation purchased equipment for $60,000 by issuing a one-year, 4% note payable, with interest to be paid at maturity on May 1,2015. The company routinely depreciates its equipment over a 5 year life with salvage value using st..

Regarding planning analytical procedures in revenue cycle : Which of the following statements is false regarding planning analytical procedures in the revenue cycle?

Has the proper tax treatment been used on prior tax returns : Siva Nathaniel owns various plots of land in Fulton County, Georgia. He aquired the land at various times during the last 20 years. About every fourth year, Siva subdivides into lots one of the property he owns. He then has water, sewer, natural gas,..

Shares of common stock outstanding throughout the year : DiCenta Corporation reported net income of $286,000 in 2014 and had 59,900 shares of common stock outstanding throughout the year. Also outstanding all year were 6,450 shares of cumulative preferred stock, each convertible into 2 shares of common. Th..

Forthcoming guidance on revenue recognition : Under the FASB’s and IASB’s forthcoming guidance on revenue recognition, a contract must have which of the following characteristics in order to be judged as persuasive?

The expected change in variable expenses takes place : Northwood Company manufactures basketballs. The company has a ball that sells for $30. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $21.00 per ball, of w..

The cost per equivalent unit for conversion costs : The following informaiton is used for Questions 2-5 Yoder Corporation uses the weighted-average method in its process costing system. The following data pertain to operations in the first processing department for a recent month: What was the cost pe..

Calculate the inventory cost : On January 15, 20 times 4, Violet Muir valued her inventory at cost. $41,000. Her statements are based on the calendar year, so you find it necessary to establish an inventory figure as of January 1.20 times 4. Calculate the inventory cost as of Janu..

User Account

All Pages