What is the effect of bad debts on revenue recognition

Assignment Help Financial Accounting
Reference no: EM132523377

Question 1: What is the effect of bad debts on revenue recognition?

Multiple Choice:

Option 1: Bad debts must be of a remote likelihood in order to recognize revenue.

Option 2: Bad debts are deducted from revenue to calculate net revenue on the income statement, similar to sales returns.

Option 3: Bad debts are ignored when determining whether to recognize revenue, but recognized as an expense on the income statement.

Option 4: The seller must believe it is probable it will collect the amounts it is entitled to collect.

Reference no: EM132523377

Questions Cloud

Make a prediction about stock expected return : Make a prediction about this stock's expected return with reference to the models of asset pricing discussed in class.
BUSS 1009 Strategic Management Assignment : BUSS 1009 Strategic Management Assignment Help and Solution, Middle East College - Assessment Writing Service - Explain the differing perspectives and theories
Reference management software package : You will utilize a reference management software package to generate your in-text citations and reference list.
Determine what is diluted earnings per share : Net income for the year ended December 31, 2021, is $600,000. The income tax rate is 30%. What is 2021 diluted earnings per share?
What is the effect of bad debts on revenue recognition : What is the effect of bad debts on revenue recognition? Bad debts must be of a remote likelihood in order to recognize revenue.
Is it ethical for employers to argue for a denial : Is it ethical for employers to argue for a denial when terminated employees file for unemployment compensation? To support your work, use your course.
Give reasons for cash flow falling under investing activity : Give reasons for the cash flows falling under the investing activities.Depreciation charged on these tangible assets for the year @10%.
Is there an arbitrage opportunity : Is there an arbitrage opportunity? Briefly explain, with reference to Arbitrage Pricing Theory.
Setting up the restaurant is very expensive and costs : Bella Swan and Edward Cullen are thinking of opening an Italian restaurant. Setting up the restaurant is very expensive and costs $400,000

Reviews

Write a Review

Financial Accounting Questions & Answers

  Auditing standards require the financial statements

Current U.S. Generally Accepted Accounting Principles and auditing standards require the financial statements of an entity for the reporting period to include:

  What should the accumulated depreciation be at december

Carson uses the sum-of-the-years'-digits method of depreciation. What should the accumulated depreciation be at December 31, 2011?

  Question 1your finance text book sold 50000 prints in its

question 1your finance text book sold 50000 prints in its first year. the publishing company expects the sales to grow

  Illustrate what bonus system would you suggest

Illustrate what bonus system would you suggest that incorporates these measures and also encourages the managers to work as a team?

  Amount of property and equipment on the balance sheet

Does the company have capital leases? If so, what are the amounts and terms of the leases? What are the four criteria for a lease to be considered a capital lease? What are the additional criteria for the lessor?

  Compute the sample standard deviation

Use the defining formula to compute the sample standard deviation s. (Enter a number. Round your answer to two decimal places.)

  The sarbanes oxley act was established

The Sarbanes Oxley Act was established in 2002. Why was it enacted? Describe 6 provisions of the Act?  Define the concept of materiality. Give 2 examples and clearly explain why you think that they are material. Accounting Changes & Correction of Err..

  Interest and principal will be repaid on the maturity date

A 1- year, 6%, $30,000 promissory note was signed at the Citizens National Bank. Interest and principal will be repaid on the maturity date of Feb 1, 2014 _This is for the month of Feb 2013 -Im trying to figure out the amount. Cash: ? Note..

  When goods are sold on a bill-and-hold basis

When goods are sold on a bill-and-hold basis, what conditions must be met to recognize revenue upon receipt of the order?

  Product that required three standard hours per unit

Dvorak Company produced 1,000 units of product that required three standard hours per unit. The standard variable overhead cost per unit is $1.40 per hour. The actual variable factory overhead was $4,000. Determine the variable factory overhead contr..

  Compare the financial outcomes of entering

Compare the financial outcomes of entering into a forward exchange contract and a money market hedge. Clearly show all your workings

  Using process costing completed and transferred

A company using process costing completed and transferred 40,000 units of product to finished goods inventory. In addition to the transferred units, 15,000 additional units were in process 60% complete when the period ended. If total conversion costs..

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