Question: Which of the following events would normally cause revenue recognition

Which of the following events would normally cause revenue recognition, assuming use of accrual accounting and transfer of title on delivery?
1. Collection of cash from a customer 30 days after the product is delivered.
2. Collection of cash from a customer 30 days before the product is delivered.
3. Delivery of a magazine as part of a prepaid 12- month subscription.
4. Inventory that cost $ 40,000 is known to have a replacement value of $ 67,000.
5. A financial institution loans $ 100,000 to a client; interest is due after 12 months; the financial institution is preparing financial statements two months after the loan was granted.
6. Goods are delivered to a customer with an invoice price of $ 26,000; the customer is notoriously slow in paying.


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  • CreatedFebruary 17, 2015
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