Four conditions must be met before revenue should be recognized. In each of the following cases, tell

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Four conditions must be met before revenue should be recognized. In each of the following cases, tell which condition has not been met.

a. Company A accepts a contract to perform services in the future for $2,000.

b. Company B ships products worth $3,000 to another company without an order from the other company but tells the company it can return the products if it does not sell them.

c. Company C performs $10,000 of services for a firm with financial problems.

d. Company D agrees to work out a price later for services that it performs for another company.

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Principles of Accounting

ISBN: 978-1439037744

11th Edition

Authors: Needles, Powers, crosson

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Question Posted: Feb 23, 2012 12:24 AM

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Four conditions must be met before revenue should be recognized. In each of the following cases, tell

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aServices have not been rendered bPers...View the full answer

Principles of Accounting

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