Explain the two methods used to determine progress over time.
Answer to relevant QuestionsIf a contract requires cash of $ 10 million to be paid in five years’ time, will $ 10 million of sale revenue be recognized? Explain.What is commercial substance? What is its significance?At the end of an accounting period, a company has $ 4,000,000 recorded in accounts receivable, all from sales. It is not likely that the company will collect all of the $ 4,000,000, even though all the sales really took ...A company with $ 200,000 in receivables could sell them for $ 169,000 without recourse or for $ 195,000 with recourse. What do the terms “with recourse” and “without recourse” mean? Why is the “without recourse” ...Hum Corp. has accounts receivable of $ 460,000. The company transfers these accounts receivable to a financial institution. There are no bad debts associated with these accounts receivable. Proceeds of $ 444,500 are received ...
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