Revenue is recognized at the point of sale

Assignment Help Financial Management
Reference no: EM131980971

What does the phrase, "Revenue is recognized at the point of sale" mean? Revenue is recorded in the accounting records when the goods are received from a supplier, and reported on the income statement when sold to the customer. Revenue is recorded in the accounting records and reported on the income statement when the cash is received from the customer. Revenue is recorded in the accounting records when the goods are sold to a customer, and reported on the income statement when the cash payment is received from the customer. Revenue is recorded in the accounting records and reported on the income statement when goods are sold and delivered to a customer.

Reference no: EM131980971

Questions Cloud

Determining market-based and negotiated transfer prices : Determining Market-Based and Negotiated Transfer Prices Carreker, Inc., has a number of divisions, including the Alamosa Division, producer of surgical blades,
Planning to save for retirement : You are planning to save for retirement. You would like to retire 25 years from today and you currently have $100,000 set aside.
What is the total cost of this inventory decision : What is the economic order quantity? What is the total cost of this inventory decision? What is the amount of average inventory?
Company manufactures elderberry wine : Calculating EVA Brewster Company manufactures elderberry wine. Brewster is considering expanding but needs additional capital.
Revenue is recognized at the point of sale : What does the phrase, "Revenue is recognized at the point of sale" mean?
Methods for staying informed on current consumer problems : What are the best methods for staying informed on current consumer problems?
Difference between book value and market value accounting : Discuss the difference between book value accounting and market value accounting.
Should linda use the solar power system : Alternatively, she can purchase from the power grid at 44 cents per 100 watt-hours per day. Should Linda use the solar power system?
Compare to that of the overall mortgage pool : How does the WAM of each tranche compare to that of the overall mortgage pool?

Reviews

Write a Review

Financial Management Questions & Answers

  Shares in an initial public offering

Pearson, Inc. is offering 40,000 shares in an initial public offering. The underwriters have agreed upon a best efforts offering with an offer price of $25 and a 7 percent spread. The underwriters were able to sell 28,500 shares to the general public..

  What is the ytm of an annual level coupon bond

What is the YTM of an x% annual level-coupon bond whose price is equal to the principal paid at maturity?

  What is initial investment outlay for spectrometer

What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow?

  Flexible flexible static enrollment-utilization enrollment

Here are the 2015 revenues for Nu-Kim Radiology for four different budgets: Flexible Flexible Static Enrollment & Utilization Enrollment Actual Budget Budget Budget Results $200,000 $204,000 $176,000 184,000. Revenue Variance = b. Volume Variance = c..

  Good ethical standards and behaviors

It is generally believed that a society needs ethics (good ethical standards and behaviors) above and beyond laws. Which of the following is not reason for this

  Economic consequences to the employees

You are the benefits manager at a medium-sized corporation and the president of the company has requested your advice. She overheard an employee saying that the employer spends too much money on benefits that aren’t really needed and that giving empl..

  Calculation is based on an annual effective interest rate

Sydney wins a prize. She has a choice of receiving a payment of $160,000 immediately or of receiving a deferred perpetuity with $10,000 annual payments, the first payment occurring in exactly four years. Which has a greater present value if the calcu..

  Maximum percentage decline in the stock

You decide to buy 1,300 shares of stock at a price of $36 and an initial margin of 65 percent. What is the maximum percentage decline in the stock before you will receive a margin call if the maintenance margin is 40 percent?

  What is its market value

The Ape Copy Company's preferred stock pays an annual dividend equal to $16.50. If investors demand a return equal to 11 percent to purchase Ape's preferred stock, what is its market value?

  Average returns equal to stock expected rate of return

Spencer Supplies's stock is currently selling for $60 per share. The firm is expected to earn $5.40 per share this year and to pay a year-end dividend of $2.20. If investors require a 9% return, what rate of growth must be expected for Spencer? If Sp..

  Pay today for a share of fancy threads common stock

The owner of Fancy Threads, a national high-end women’s boutique is considering opening a boutique on Grand River Avenue. The company has experienced phenomenal sales growth, and you are considering buying some of their stock. how much would you pay ..

  What is the effective cost of borrowing in case

Your firm has an average collection period of 31 days. Current practice is to factor all receivables immediately at a discount of 1.2 percent. What is the effective cost of borrowing in this case? (Do not round intermediate calculations. Enter your a..

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