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.

  • CreatedFebruary 17, 2015
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