Theory question based on revenue recognition principlemany

Assignment Help Financial Accounting

Reference no: EM13356233

Theory question based on revenue recognition principle.

Many companies sell products allowing their customers the right to return merchandise if they are not satisfied. Because the return of merchandise can retroactively negate the benefits of having made a sale, the seller must meet certain criteria before revenue is recognized in situations when the right of return exists. SFAS No.48,Revenue recognition when right of return exists, lists the criteria, the most criteria of which is that the seller must be able to make reliable estimates of future returns.

Why do the two revenue recognition policies differ?

Reference no: EM13356233

Questions Cloud

Capitalization or expensing the equipmentmerton company : capitalization or expensing the equipment.merton company purchased a building at a cost of 364000 on january 1

Disclosure of depreciation expense in income : disclosure of depreciation expense in income statement.merton company purchased a building at a cost of 364000 on

Multiple choice questions on statement of cash flows1the : multiple choice questions on statement of cash flows.1.the category that is generally considered to be the best measure

Filling out missing figures in balance sheetincomplete data : filling out missing figures in balance sheet.incomplete data with purchase differentialnbsp kasper corporation acquired

Theory question based on revenue recognition principlemany : theory question based on revenue recognition principle.many companies sell products allowing their customers the right

Theory question based on revenue recognitionmany companies : theory question based on revenue recognition.many companies sell products allowing their customers the right to return

Multiple choice question based on cash flow : multiple choice question based on cash flow statement.1.miller company purchased treasury stock with a cost of 15000

Multiple choice question based on basic accounts1a company : multiple choice question based on basic accounts.1.a company started the year with 400 of supplies. during the year the

User Account

All Pages