In case of sale on approval basis when should revenue be recognized? (a) When goods have been

Question:

In case of sale on approval basis when should revenue be recognized?

(a) When goods have been delivered to customer.

(b) When buyer has accepted to purchase or time for buyer’s response has expired.

(c) When payment is received from buyer.

(d) None of these.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting

ISBN: 9780071078023

1st Edition

Authors: Dhanesh K. Khatri

See More Books

Question Posted: Dec 15, 2023 11:39 PM

See More Questions

Each of the following independent cases involves interest payments, and the issue is interest deductibility. Case A: Linda Lands borrowed $700,000 and used the funds to purchase an income-producing...
Which U.S government agency acts as the legal enforcement entity for businesses and organizations involved in commerce.
1. Consider the following function. (i) (ii) f(x)=4-x, 0x 4 Sketch the odd and even periodic functions of period 8. Compute its Fourier sine and cosine series.
Describe the general process used to determine the ULRD using AICPA sampling tables?
Sodium ions (Na+) move at 0.851 m/s through a bloodstream in the arm of a person standing near a large magnet. The magnetic field has a strength of 0.254 T and makes an angle of 51.0 with the motion...
What are the main branches of accounting?
Suppose you raise this book (inertia $m=3.4 \mathrm{~kg}$ ) from the floor to your desk, $1.0 \mathrm{~m}$ above the floor. (a) Does the gravitational potential energy of the Earth-book system...
Will Starbucks ever return to the revenue and profit growth that it once enjoyed? Why or why not? By now, you should be familiar with the Starbucks story. After a trip to Italy in the early 1980s,...
Write the function sum2.m that accepts a matrix m and returns the summation of the positive numbers and the summation of the negative numbers in m. The outputs are sum_p, and sum_n. Use the function...
How life membership fee and entrance fee are recognized in the books of accounts? (a) At the present value of the fee so received. (b) These are to be shown as revenue in the year in which these are...
For export of goods with free on board (FOB) sales the sales revenue is to be recognized at which point of time? (a) When goods are dispatched from the godown of seller. (b) When goods are handed...
Distinguish between the distribution of sample means and distribution of sample proportions.
To what extent does socialization contribute to the reproduction of social inequalities and power dynamics within society ?
How does socialization contribute to the formation and perpetuation of cultural norms and values within a society ?
Bell Canada issues a 20 year bond with 3% coupon rate (paid semi-annually.) Other similar Bell Canada bonds a yield of 3.2%. (These bonds are quoted on a bond equivalent yield" basis, i.e. compounded...
Implementing a Company's Strategic Sustainability Plan debate the difficulty of establishing a sustainable supply chain operation while maintaining a balanced triple bottom line. Consider how you...
Couzen's Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.26 and fixed costs of $508,500. Every dollar of sales contributes 26 cents toward fixed costs...
You currently own 250 shares of Pluto, Inc. Pluto is an all equity firm that has 36,000 shares of stock outstanding at a market price of $25 a share. The company's earnings before interest and taxes...
Which one of the following anhydrous chloride is not obtained on direct heating of its hydrated chloride? (A) BaCl2 (B) CaClz (C) MgCl2 (D) SrCl2
If an investor owns more than 50% of an investee, how is this treated on the investors financial statements?
If an investor owns more than 50% of an investee, how is this treated on the investors financial statements?
If an investor owns more than 50% of an investee, how is this treated on the investors financial statements?
How does HRM relate to other functions within an organization, such as finance and marketing?
Discuss how a company's neutral policy such as requiring everyone to wear the same uniform can sometimes be interpreted as discrimination. Can you think of other "neutral" sounding policies can...
Finally, 21st Century is also considering Project Z Project Z has an up-front after-tax cost of $500,000, and it is expected to produce after-tax cash flows of $100,000 at the end of each of the next...

In case of sale on approval basis when should revenue be recognized? (a) When goods have been

Question:

Step by Step Answer:

b When buyer ha...View the full answer

Financial Accounting

Students also viewed these Business questions