Revenue usually is recognized at the point of sale. Under special circumstances, however, bases other than the
Fantastic news! We've Found the answer you've been seeking!
Question:
Revenue usually is recognized at the point of sale. Under special circumstances, however, bases other than the point of sale are used for the timing of revenue recognition.
Disregarding the special circumstances when bases other than the point of sale are used, discuss the merits of each of the following objections to the sales basis of revenue recognition:
It is not conservative enough because accounts receivable do not represent disposable funds; sales returns and allowances may be made; and collection and bad debt expenses may be incurred in a later period.
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date: