Question: An ability to estimate future returns when right of return
An ability to estimate future returns (when right of return exists) is an important consideration in revenue recognition. Identify factors impairing the ability to predict future returns.
Answer to relevant QuestionsList and discuss the factors that affect the fair value of an option.Distinguish between net income, comprehensive income, and continuing income. Cite examples of items that create differences between these three income measures.Identify the conditions that are usually required before a sale with right of return is recognized as a sale and the resulting receivable is recognized as an asset.a. What is the main provision of accounting for capitalization of interest, and what are its objectives?b. How is interest to be computed, and how is the interest rate to be ascertained?c. What restrictions to capitalization ...Identify and explain at least one flaw to which tax allocation procedures are subject.
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