1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lina2011 [118]
3 years ago
15

What are the five key steps to applying the revenue recognition principle? 2. What are indicators that control has passed from t

he seller to the buyer, such that it is appropriate to recognize revenue at a point in time? 3. Under what circumstances can sellers recognize revenue over time?
Business
1 answer:
LenKa [72]3 years ago
6 0

Answer:

The Five Steps to applying the revenue recognition principle

1. Identify the contract with a customer.

2. Identify the performance obligation(s) in the contract.

3. Determine the transaction price.

4. Allocate the transaction price to the performance obligations.

5. Recognize revenue when (or as) each performance obligation is satisfied.

Indicators that Control has Passed from the Seller to the Buyer

A performance obligation is satisfied at a single point in time when control is transferred to the buyer at a single point in time. This often occurs at delivery. Five key indicators are used to decide whether control of a good or service has passed from the seller to the buyer. The customer is more likely to control a good or service if the customer has:

1. An obligation to pay the seller.

2. Legal title to the asset.

3. Physical possession of the asset.

4. Assumed the risks and rewards of ownership.

5. Accepted the asset.

Under what circumstances can sellers recognize revenue over time

<em>if at least one of the following three criteria is met: </em>

1. The customer consumes the benefit of the seller's work as it is performed,

2. The customer controls the asset as it is created, or

3. The seller is creating an asset that has no alternative use to the seller, and the seller can receive payment for its progress even if the customer cancels the contract.

You might be interested in
A study has been conducted to determine if Product A should be dropped. Sales of the product total $224,000 per year; variable e
jek_recluse [69]

Answer: Decrease by $11,200 per year.

Explanation:

First let's calculate the income if the product is not dropped.

Calculting income would be,

= Sales - Variable Costs - Fixed Costs

= 224,000 - 156,800 - 100,800

= -$33,600

Income(loss) would be a ($33,600) if the product is kept.

If the product is discontinued, it is given that $44,800 in fixed costs will still continue.

These fixed costs cannot be covered in part by the Sales because the product will be discontinued. So that means the net operating Income would simply be a $44,800 loss.

The difference between these 2 options is therefore,

= 44,800 - 33,600

= $11,200

This means that if Product A is stopped, the net operating income will decrease by a further $11,200 because there is no revenue to cover the fixed assets in part. The last option is correct.

7 0
3 years ago
Elaborate on the meaning of contemporary socio-economic issues.​
saul85 [17]

Answer: See explanation

Explanation:

Contemporary Socio-economic issues are the challenges that are faced by the society. It should be noted that these problems and challenges have s negative impact on the economy and the society as a whole.

Some of the contemporary socio-economic issues that are faced by the society are poverty, corruption, illteracy, unemployment, etc.

These issues poses a challenge to the government and government seek ways to address them.

4 0
3 years ago
Early personal computer users remember the cumbersome, user-unfriendly "DOS" system. When Apple introduced System 1 and Microsof
Aleksandr [31]

Early personal computer users remember the cumbersome, user-unfriendly "DOS" system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their relative advantage .

Option A

<u>Explanation: </u>

A product's dominance and market appeal over similar items. A competitive advantage is usually accomplished by giving better value to customers through either reducing prices or delivering added quality and service that justify higher costs.

That idea is based on consumer brand and product perceptions and does not necessarily reflect the actual characteristics of this product or service. The definition helps companies to consider that customers would choose to use this product or whether a rival would rather remain faithful to the already existing product.

8 0
3 years ago
Recruiting new employees via the Internet allows companies to _________. a.Reach candidates from across the worldb.Conduct recru
alexdok [17]
D. All of the above.

Internet allows reaching out candidates from all over the world and at the same time does require you to physically be there for recruitment enabling you to conduct recruitment sessions from office. Further, the resumes and CVs would be sent online requiring no need for physical copies of them.
4 0
3 years ago
Read 2 more answers
Any effort by the Federal Trade Commission (FTC) to evaluate expected deceptive marketing practices would be seriously flawed be
Llana [10]

Answer:

True

Explanation:

This is true because the Federal Trade commission(FTC) analyze and investigate a seller or sellers who may be so cooperative as to make agreements that ensure large amounts of profit for them which is likely harmful and exploitative to consumers . FTC investigates business mergers which may be horizontal or vertical that are likely done for the purpose of increasing market share and fostering a sort of monopoly of the market. However, mergers and cooperation among businesses in the market do not always yield a monopoly and the FTC may be wrong(sometimes) to wave mergers that could increase the quality of goods or services in a market

7 0
2 years ago
Other questions:
  • Computer Consultants Inc. is considering a project that has the following cash flow and cost of capital (r) data. What is the pr
    9·1 answer
  • Assume a U.S.-based MNC is borrowing Romanian leu (ROL) at an interest rate of 8% for one year. Also assume that the spot rate o
    13·1 answer
  • A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units t
    12·1 answer
  • What is the correct answer If marginal cost is rising in a competitive firm's short-run production process and its average varia
    10·1 answer
  • Sally’s Dress Shop, Inc. reports operating income of $200,000 and interest expense of $18,000. The average common stockholders’
    5·1 answer
  • For each of the following transactions of JonesSpa Corporation, for the month of January, identify each as an investing activity
    5·1 answer
  • According to When to Ally, When to Acquire:
    14·1 answer
  • 23 points left out<br><br> :$&amp;:$:&amp;,&amp;,&amp;,,
    6·2 answers
  • Marvin had the following transactions: Salary $50,000 Interest on City of Chicago bonds $250 Bank loan (proceed to buy personal
    8·1 answer
  • True or false A contract is a type of government protection?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!