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Essay

Revenue Recognition for McDonald's Corporation

Essay specific features

 

Issue:

Business

 

Written by:

Molly W

 

Date added:

January 20, 2012

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 991

 

Was viewed:

7502 times

 

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Essay content:

The sales they record are by company-operated restaurants. McDonald’s records these sales using a cash basis system. This system means that the accountants record revenues when the company receives cash, and it records expenses when it pays cash. By using a cash basis, McDonald’s does not have to estimate what it will not receive in its sales...
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By using a cash basis, McDonald’s does not have to estimate what it will not receive in its sales. McDonald’s “presents sales net of sales tax and other sales-related taxes” (McDonald’s Annual Report, 44). Franchise fees are for the services McDonald’s offers to the franchisees. Franchise fees included on the balance sheet are from the franchisees paying rent and a percentage of their sales...
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