One of the most important decisions in accounting is to know when to recognize revenue. Understanding the revenue recognition criteria and how they apply helps you understand when revenue should be earned.
Think about the business in which you work. How would revenue be recognized in your industry? In what type of industries would a company have to wait to report revenue even though the payment or valid promise of payment might be received early?
Consider the following examples:
A long-term construction company (such as one that builds highways)
A fitness center where membership dues are paid upfront and quarterly
Select one example and respond to the following in a minimum of 175 words:
When do you think revenue would be recognized?
When would the two revenue recognition criteria be met?
What is the risk to users of financial statements if revenue is recognized too early?
Discuss the difference between overstatement and understatement of revenues.
Why Choose Us
- 100% non-plagiarized Papers
- 24/7 /365 Service Available
- Affordable Prices
- Any Paper, Urgency, and Subject
- Will complete your papers in 6 hours
- On-time Delivery
- Money-back and Privacy guarantees
- Unlimited Amendments upon request
- Satisfaction guarantee
How it Works
- Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
- Fill in your paper’s requirements in the "PAPER DETAILS" section.
- Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
- Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
- From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.