A major source of revenue for Google Inc. is advertising. With Google Ad Words, advertisers can pay
Question:
A major source of revenue for Google Inc. is advertising. With Google Ad Words, advertisers can pay on a cost-per-click basis (Google, 2013). This means that the advertisers pay every time a customer clicks on one of their ads. Assume that Tech Experts create an Ad Word account with Google on October 1, 2017. Tech Expert starts advertising on a cost-per-click basis for the month of November 2017. In November, 300 users clicked on their ad at a rate of $0.30 per click. Google billed and Tech Experts pays for the advertising services in December 2017. Assume Google prepares financial statements on a monthly basis.
Required
Analyze and determine what month Google should recognize the accounts receivable and revenue for Tech Experts using the revenue recognition criteria of performance, measurability and collectability.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Step by Step Answer:
Performance Google is selling the service of advertising Once Tech Experts advertisement is poste...View the full answer
Fundamental Accounting Principles Volume 1
ISBN: 9781259259807
15th Canadian Edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
