Ford Motor Company is one of the world's largest companies with annual sales of cars and trucks
Question:
Ford Motor Company is one of the world's largest companies with annual sales of cars and trucks in excess of 170 billion. A recent annual report for Ford contained the note:
As a general principle, revenue is recognized when the following criteria are met:
(i) persuasive evidence of an arrangement exists,
(ii) delivery has occurred and services have been rendered,
(iii) the price to the buyer is fixed or determinable and.
(iv) collectability is reasonably assured. Membership revenue is earned on a straight-line basis over the longer of the contractual term or the estimated membership term. The weighted average membership life is 39 months.
Required
A recent annual report for ExxonMobil reported a quick ratio of 0.45. For the previous year, the ratio was 0.70. Based on this information, do you think that Exxon is experiencing financial difficulty? What other information would you want to consider in making this evaluation?
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello