All categories

3 years ago

Identifying the Five Steps in the Revenue Recognition Process

Business

1 answer:

s344n2d4d5 [400]3 years ago

4 0

Answer:

Step 1: Identify contract(s) with customer

Correct Match: Customer agrees to purchase one computer plus two years of data services for an agreed upon price.

Step 2: identify performance obligation(s) in the contract

Correct Match: Customer will receive the computer immediately and will benefit from two years of data services for the tablet.

Step 3: Determine transaction price

Correct Match: The total price for the computer and two years of services is $800.

Step 4: Allocate transaction price to performance obligation(s)

Correct Match: The standalone selling price of the computer is $500 and of the two-year service contract is $300.

Step 5: Recognize revenue when (or as) each performance obligation is satisfied through a transfer of control

Correct Match: Customer takes possession of the computer and benefits from the data service over two years.

You might be interested in

At Dana's new business, he's running into problems with employees who don't want to change procedures or do things his way. This

Alexxandr [17]

A. Buying an established business

8 0

3 years ago

Read 2 more answers

Which answer applies to "fine print"?

jekas [21]

The answer would be b you should always read the fine print

3 0

3 years ago

Read 2 more answers

Calculate the present value of the following: a-1. Annual payment of $800 for 10 years at 5% interest. (Do not round intermediat

kipiarov [429]

Answer:

a-1 Present value = 6,177.39

a2- Present Value =6,227.79

a3- Choose the payment stream with the highest present value = a2

b1- Present Value=3,353.98

b2-Present Value=2,805.28

b3-Choose the payment stream with the highest present value = b1

Explanation:

a-1 describes an ordinary annuity whose present value is calculated as follows:

$Present value =PMT*\frac{[1-(1+i)^-^n]}{i}$

where PMT=$800; i= 5%, n= 10

$Present value =800*\frac{[1-(1+0.05)^-^1^0]}{0.05}$ = 6,177.39

a2- $Present value =600*\frac{[1-(1+0.05)^-^1^5]}{0.05}$ = 6,227.79

a3- If I were receiving these payments annually, I would prefer the payment stream with the highest present value ie a2 -Annual payment of $600 for 15 years at 5% interest.

b1- $Present value =800*\frac{[1-(1+0.20)^-^1^0]}{0.20}$ = 3,353.98

b2- $Present value =600*\frac{[1-(1+0.20)^-^1^5]}{0.20}$ =2,805.28

b3- f I were receiving these payments annually, I would prefer the payment stream with the highest present value ie b1- Annual payment of $800 for 10 years at 20% interest.

3 0

3 years ago

The depreciation of equipment will require an adjustment that results in A. total assets increasing and total expenses increasin

11Alexandr11 [23.1K]

The answer is D. Total assets decreasing since they're depreciated. But total expenses will increase for sure in order to replace the depreciated equipment.

6 0

3 years ago

Read 2 more answers

Retail managers can use ________ to determine which inventory items require the most attention.

pantera1 [17]

Answer: (D) ABC analysis

Explanation:

ABC analysis is one of the type of inventory method that are basically divided into the three main categories that is A,B and the C categorization.

The main advantage of this type of analysis is that it is categorized on the quantity and the values basis and this analysis is basically keeps the cost in the business under the control. It is also known as the inventory management and the ABC analysis contributed in the overall profit in an organization.

According to the question, the retail manager basically using the ABC analysis for determining the inventory items in the system.

Therefore, Option (D) is correct.

5 0

4 years ago