In the presence of the following contractual arrangements, would you expect a firm to prefer to recognise
Question:
In the presence of the following contractual arrangements, would you expect a firm to prefer to recognise revenue over time (that is, throughout the term of a contract) or to defer profit recognition until the completion of the contract (that is, at a future point in time?
a. A management compensation scheme tied to reported profits.
b. A debt covenant that is approaching the point of being in technical default.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
a If management was rewarded in terms of accounting profits then it would be reasonable to assume th...View the full answer
Answered By
Nilufar Matin
Being a teacher is not an easy task. Teaching profession brings with it lots of responsibilities and challenges. But there is nothing wiser than teaching.It is the way of motivating and shaping the character as well as future of a student.
i have tutored mostly high school students from a very young age. Apart from being their tutor i also guide them how to handle real life problems confidently and be strong and independent. I also have fun with them and sometimes i run out of time to spend quality time with them.Basically,I enjoy sharing experiences and learning from them as well.
0 Reviews
10+ Question Solved
Related Book For 
Question Posted:
