Revenue Recognition

Essay specific features

 

Issue:

Business

 

Written by:

Krystal C

 

Date added:

January 2, 2017

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1597

 

Was viewed:

6225 times

 

Rating of current essay:

 
Essay content:

(Graziano 2005).” In this paper some of the challenges and issues concerning revenue recognition and the procedures set in place by various accounting organizations, including FASB will be discussed. Accountants have long debated when a sales transaction should be recorded as earned revenue. The general rule states that revenue must be recognized when earned or realized, and should be matched to the liability that was faced in earning the revenue in the period...
displayed 300 characters

Custom written essay

All essays are written from scratch by professional writers according to your instructions and delivered to your email on time. Prices start from $10.99/page

Order custom paper

Full essays database

You get access to all the essays and can view as many of them as you like for as little as $28.95/month

Buy database access

Order custom writing paper now!

  • Your research paper is written
    by certified writers
  • Your requirements and targets are
    always met
  • You are able to control the progress
    of your writing assignment
  • You get a chance to become an
    excellent student!

Get a price guote

 
 

The general rule states that revenue must be recognized when earned or realized, and should be matched to the liability that was faced in earning the revenue in the period. This is known as the matching principle. However the question that many CPAs ask is: when is it really earned? Is it earned when the sale contract is signed, the product is delivered to the customer or the payment of the product is received? Ronald Clark draws the following scenario to help illustrate this revenue recognition issue: "Capitol Motors is in its first year of operations and as of December 30 has total revenues of $5 million, projected net income of $200,000, and total assets of $40 million (Capitol’s year-end is December 31)...
displayed 300 characters

General issues of this essay:

Related essays:

x
Services