Revenue principle statement

Assignment Help Accounting Basics

Reference no: EM13124480

The revenue principle states that revenue shall be recognized at a point when

a. An exchange transaction involving goods and services has occurred and the earnings process is essentially complete.

b. An order for shipment of a definite amount of merchandise has been received.

c. A contract between buyer and seller has been signed by both parties.

d. The seller has shipped merchandise to a customer under the terms that the customer need not pay for the merchandise until it is sold.

Reference no: EM13124480

Questions Cloud

Create a correct income statement beginning with income : loss on disposal of discontinued music division $20,000. The income tax rate is 40%. Create a correct income statement, beginning with income before income taxes

Problem related to divisions net assets : Books-R-Us, Inc. committed to sell its comic book division (a component of the business) on September 1, 2010. The book value of the division's net assets was $400,000 and the estimated selling price of the net assets was $350,000.

How many dollars of revenue must the company generate : Circle K Furniture has a contribution margin ratio of 16%. If fixed costs are $176,800, how many dollars of revenue must the company generate in order to reach the break-even point?

Eeat beans mostly : In a one (1) page essay, use three (3) conventional elements of literature to help you develop a literary analysis of your own on Brooks' "The Bean Eaters.

Revenue principle statement : The revenue principle states that revenue shall be recognized at a point when

Treatment as an extraordinary item : Which of the following would be treated as an extraordinary item?

Illustrate what is the market rate of return on this stock : The firm has established a pattern of increasing its dividends by 3 percent annually and expects to continue doing so. Illustrate what is the market rate of return on this stock?

Maximizing the sustainable yield : Maximizing the Sustainable Yield, A lake has a carrying capacity of 10,000 fish. At the current level of fishing, 2000 fish per year are taken and the fish population seems to hold fairly steady at about 4000.

User Account

All Pages