carried over‚ causing a decrease in revenue. The spending trends of decreased in 2010. The slowdown impacted the spending trend of commercial customers which made up seventy-seven percent of the revenue in 2010. The consumer segment experienced a decrease due to consumers the company competitively pricing its
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Cash | 90 | | | Service Revenue | | 90 | | Unearned Service Revenue | 60 | | | Service Revenue | | 60 | 8 | Cash | 300 | | | Accounts Receivable | | 300 | 9 | Cash | 750 | | | Unearned Service Revenue | | 750 | 15 | Accounts Payable | 50 | | | Cash | | 50 | 16 | Accounts Payable | 600 | | | Cash | | 600 | 19 | Cash | 60 | | | Unearned Service Revenue | | 60 | 23 | Cash | 3000 | | | Service Revenue | | 3000 | | Accounts
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Wareham SC Systems‚ Inc. Case Study Wareham SC Systems current revenue recognition policy states that they recognize revenue when they have shipped their product to the customer. SC Systems also adjusts for warranty by estimating how much money will be spent on fulfilling those warranties. They subtract this estimation of warranties from the total revenues for shipped products. For other types of specific contracts‚ such as service contracts‚ they use the percentage-of-completion accounting
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incredibly large revenue. When compared to its competitors‚ there is essentially no competition‚ with Sirius XM posting revenues of over $3 billion for each of the past two years. The closest competitor to Sirius in the radio broadcasting market in terms of revenue was Cumulus Media‚ which had posted revenues just over $1 billion in 2012 and $550 million in 2011. Sirius XM has also shown consistent growth of its revenue since the merger in 2008. Over the past 3 years Sirius XM has seen its revenue grow by
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fictitious revenues‚ timing differences‚ concealed liabilities & expense‚ improper asset valuation‚ or asset/revenue overstatements (just to name a few)‚ (Frempong‚ 2012). It is essential one be educated and thoroughly understand the different types of financial statement fraud schemes and the accompanying accounting transactions in order to better identify fraud. Fraud Schemes and Examples Fictitious Revenue When management feels there is an immense amount of pressure for revenues to be greater
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Priceline.com 1. At the moment Priceline recognizes revenue using the gross method whereby the offered price $250 net of taxes and fees is recognized as revenue and $200 is recognized as cost of goods sold. The alternative would be to use the net method where only the 20% commission is recognized as revenue. It is important to distinguish between who bares the risks and benefits of the transaction. (SEC Staff Accounting Bulletin #101‚ Q10). Despite Priceline being the merchant of record‚ they
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Reporting Interpretations Committee (IFRIC). 2. Operating Revenue refers to the incomes that derived from everyday operations. As
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accounting predicts a periodic measure of performance that is used to predict future cash flows. This is the difference between cash receipts and cash payments from transactions related to providing goods and services during a reporting period. “Revenue is recognized when cash is received and expense is recognized when cash is paid”. ("Accrual basis accounting‚"). “When transactions are recorded on a cash basis‚ they affect a company’s books only once a completed exchange of value has occurred; therefore
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1. What assumptions underlie Oracle’s recognition of revenue for license fee. Are these assumptions reasonable given the firm’s business and operating policies? Oracle recognized its license fee either upon shipment of the product or at the time such agreements are effective. In most instance is this the date of the agreement. The assumptions underlying this method is that if the customer is creditworthy and the terms of the agreement are such that the amounts are due within one year and are non-refundable
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1) Variable expenses in relation to Revenue Hours are Power‚ Wages of Hourly Personnel‚ Corporate services‚ and Sales Promotions. Variable Expenses | January | February | March | Power | $1546 | $1485 | $1697 | Hourly Personnel | $7896 | $7584 | $8664 | Corporate Services | $15‚424 | $15‚359 | $15‚236 | Sales Promotions | $7‚909 | $7‚039 | $8‚083 | TOTAL VC | $32‚775 | $31‚467 | $33‚680 | FixedExpenses | January | February | March | Space Costs | $9‚240 | $9‚240 | $9‚240
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