Why you believe that revenue recognition is treat different

Assignment Help Other Subject
Reference no: EM131329031

Assignment

The Case of the Airline Industry- When to Recognize Revenue

Consider the earnings process applying to a travel agent and an airline company and then defend the criteria for recognizing revenue in each of the two cases.

A travel agent helps a customer purchase an airline ticket and recognizes revenue for its commission at the point the customer purchases the ticket. Some argue that revenue recognition is appropriate because the earnings process of the travel agent-helping the customer make travel plans and arrangements-is largely completed once the customer purchases the ticket. What do you think?

In contrast, an airline that provides the same upfront service with its own in-house sales force cannot recognize revenue for these services because the airline's earnings process is incomplete until the flight itself is provided.

Required: After reading the textbook chapter 5 Financial accounting theory and analysis: Text and cases, for this week on income concepts, discuss the factors to be considered in determining when revenue should be recognized in measuring the income of a business enterprise. Discuss the reasons why you believe that revenue recognition is treated differently under these two different scenarios with in the airline industry.

Paper must be 2-3 pages

Include 2 sources beside the one included.

Reference no: EM131329031

Questions Cloud

What is the definition of single loss expectancy : What is the definition of single loss expectancy? What is annual loss expectancy?
Explain what you hoped to accomplish with your interview : Write a summary of your goals (identify the topic of interest and explain what you hoped to accomplish with your interview);A brief description of the person you interviewed and the interview session (including the person's age, sex, marital status,..
Determine the annual returns for the portfolio : Calculate the average and standard deviation of annual returns for each company.- Determine the annual returns for this portfolio.
What is a cost benefit analysis : What is risk appetite? Explain why risk appetite varies from organization to organization.
Why you believe that revenue recognition is treat different : Discuss the reasons why you believe that revenue recognition is treated differently under these two different scenarios with in the airline industry.
Describe how outsourcing can be used for this purpose : Describe the "mitigate" strategy. What three planning approaches are discussed in the text as opportunities to mitigate risk?
How the character of your same sex is to blame : Write a 750-1,000-word essay taking sides in the couple's argument, pointing out how the character of your same sex is to blame. For example, if you are a man, you will respond from the husband's point of view.
Calculate the real annual rates of return for oracle : Calculate the real annual rates of return for Oracle. Is the real rate of return less than the nominal rate of return every year? Why?
What are vulnerabilities : What are the strategies for controlling risk as described in this chapter?

Reviews

Write a Review

Other Subject Questions & Answers

  Cross-cultural opportunities and conflicts in canada

Short Paper on Cross-cultural Opportunities and Conflicts in Canada.

  Sociology theory questions

Sociology are very fundamental in nature. Role strain and role constraint speak about the duties and responsibilities of the roles of people in society or in a group. A short theory about Darwin and Moths is also answered.

  A book review on unfaithful angels

This review will help the reader understand the social work profession through different concepts giving the glimpse of why the social work profession might have drifted away from its original purpose of serving the poor.

  Disorder paper: schizophrenia

Schizophrenia does not really have just one single cause. It is a possibility that this disorder could be inherited but not all doctors are sure.

  Individual assignment: two models handout and rubric

Individual Assignment : Two Models Handout and Rubric,    This paper will allow you to understand and evaluate two vastly different organizational models and to effectively communicate their differences.

  Developing strategic intent for toyota

The following report includes the description about the organization, its strategies, industry analysis in which it operates and its position in the industry.

  Gasoline powered passenger vehicles

In this study, we examine how gasoline price volatility and income of the consumers impacts consumer's demand for gasoline.

  An aspect of poverty in canada

Economics thesis undergrad 4th year paper to write. it should be about 22 pages in length, literature review, economic analysis and then data or cost benefit analysis.

  Ngn customer satisfaction qos indicator for 3g services

The paper aims to highlight the global trends in countries and regions where 3G has already been introduced and propose an implementation plan to the telecom operators of developing countries.

  Prepare a power point presentation

Prepare the power point presentation for the case: Santa Fe Independent School District

  Information literacy is important in this environment

Information literacy is critically important in this contemporary environment

  Associative property of multiplication

Write a definition for associative property of multiplication.

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