3.6 Revenue recognition with examples when goods are sold under sale or return There are cases when payments are received prior to events that trigger revenue recognition. In that case‚ cash is debited and the unearned revenue is credited. On the other hand‚ when revenue recognition is triggered before actual payment is received‚ accounts receivable is debited while revenue is credited (“Revenue Recognition Principle‚” 2013). Goods are sold under sale or return when they are “sent by the supplier
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Task 1 1. A roll forward is an important test in relation to year-end balance of gross PPE. It is necessary for the auditor to have assurance about the amount on the year-end 2011 balance sheet. However‚ a majority of the dollar amounts on the balance sheet should have been tested in the previous year. Roll forward allows the auditor to asses any activity since the last recording on the balance sheet. The mathematical accuracy is crucial because if the numbers are off‚ the auditor could be tested
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CHAPTER 1 Introduction Background of the Study Like many other hygiene convenience‚ shoe polish or can also be called boot polish is usually a wax ‚ cream or paste used by people to shine‚ water proof and restore the appearance of leather shoes. This extends the footwear’s life. This is made up of many kinds of chemicals and because of this; it can cause irritations‚ allergies to us. In our generation‚ shoe polish is used every day and companies produce a lot of it to meet the demands of
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Memorandum To: John J. Morris‚ Department of Accounting From: Group #1 (Anthony Smith‚ Jessica Kolb‚ Jeffrey Brownlee‚ Caleb Dykes) Date: 4/11/13 Subject: ACCTG 642: Case 10-1‚ SolvGen Inc. Statement of Relevant Facts Direct Drugs Inc. (Direct) has created a plan for the acquisition of SolvGen Inc. (SolvGen)‚ which is a publicly owned company. Direct has engaged an audit team to review agreement and procedures dealing with two separate material agreements. The first agreement is a
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Mathematics Test Time: 60 minutes for 60 questions Directions: Each question has five answer choices. Choose the best answer for each question‚ and then shade in the corresponding oval on your answer sheet. 1. Which of the following numbers completes the sequence 3‚ 8‚ 14‚ 21‚ 29‚ ___? 5. (C) 37 William earned $3‚200 per month as a teacher for the ten months from September to June. Then he took a job as a barista at a local café‚ where he earned $2‚000 per month during July and August. What
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Revenue Recognition Revenue is the electricity that drives business. Revenue has been the starting point on every income statement generated‚ every sales meeting conducted‚ and is on every entrepreneur’s wish list. The basic concept for revenue recognition is that revenue should not be recognized until it is realized or realizable and earned. There are also four criteria must be met in order to recognize revenue: 1) persuasive evidence of an arrangement exists: Consider the substance of the transaction
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a one-man shoe repair shop in 1918 run by Nathan Swartz. His products were very successful and led the beginning of Abington Shoe Company in 1955. Mr. Swartz continued to run the business his son Sidney became involved as well. Together they created the first truly waterproof boot that come to be known as the "timberland boot". As popularity for the boots grew‚ the name became attached. The company officially changed its name to Timberland Co. in 1978. Sidney Swartz took control of the company
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operating cycle‚ the net operating cycle‚ and gross margin. c. If tolerable misstatement is $45‚000 for inventory‚ develop an expectation range for inventory turn days. d. With respect to inventory‚ what might these trends indicate about the potential misstatement in inventory? 10-32 (Components of internal control) Internal controls can be categorized using the following framework. 1. Control environment 2. Risk assessment 3. Information and communication 4. Control activities
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Identification of Unknown Carbohydrates using various biochemical tests Date of experiment: 11/10/2012 Name of Student: Vicki Marshall Introduction A series of biochemical tests was carried out to identify unknown carbohydrates. There were six carbohydrates that needed to be identified; they have been randomly labelled A-F. The carbohydrates are glucose‚ fructose‚ maltose‚ lactose‚ sucrose and starch. There was six tests that were carried out to help identify them‚ these were: Iodine Test
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Pattern 3 Chapter One 11 Upper pattern 12 Pattern for leather lining 13 Chapter Two 16 Pattern for strengthening the décolleté in front of the last 17 Thin non-woven lining 17 Chapter Three 18 “Pumps Shoes Pattern Guide”. 19 Basic Pumps Pattern 1. Cover the last with adhesive tape strips and mark the center lines on its front and back. 2 . Mark the last meridians - lines that has the most contact between the shoes to the foot. These lines are the borders of the cut on the pump shoes‚ so-called
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