Handout Cases on Revenue Recognition CASE 1 The Sea-Soft Water Company distributes its water softeners to dealers upon their request. The contract agreement with the dealers is that they may have 90 days to sell and pay for the softeners. Until the 90-day period is over‚ any softeners may be returned at the dealer’s expense and with no further obligations on the dealer’s part. If the water softeners are damaged while in the hands of a dealer‚ Sea-Soft agrees to accept the return of the
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Chapter 10 Auditing the Revenue Process SEC SAB101: Revenue recognition 1. 有persuasive evidence 有证据 2. Delivery occurred‚ service rendered，东西给了服务于需求 3. Price is fixed/determinable 价格固定 4. 有collectability钱收的回来 Fraud Risk in Revenue cycle: 欺诈风险 1. Side agreement: off-book‚ adjust record to entice customer 2. Channel stuffing: 填塞分销渠道，造成销售假象 inflate sales by forcing product through a distribution channel 3. Related party transaction: 实质重于形式原则substance over form是指企业应当按照交易或事项的经济实质进行会计核算，而不应当仅仅按照它们的法律形式作为会计核算的依据
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Revenue and sales maximization Revenue maximization Maximizing sales revenue is an alternative to profit maximization and occurs when the marginal revenue‚ MR‚ from selling an extra unit is zero. The notion that business firms (especially those operating in the real world) are primarily motivated by the desire to achieve the greatest possible level of sales‚ rather than profit maximization. On a day-to-day basis‚ most real world firms probably do try to maximize sales rather than profit. For firms
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HaloButyl(25%) 2) 1985 : Prduced Butyl(50%‚ 45‚000t)‚ HaloButyl(50%‚ 45‚000t) Transfer NASA to ERROW : Butyl(21‚000t) Group 3 - 3/13 Q1. The meaning and accuracy of the volume variance. • NASA Rubber Division의 Sales Performance(1986) Actual Net sales Revenue 63‚239‚000 Budget 58‚660‚000 Deviation 4‚579‚000 exceed 3‚735‚000 exceed Gross Margin ※ Sales Volume Up 40‚945‚000 37‚210‚000 ※ Feedstock Cost Down Group 3 - 4/13 • NASA Rubber Division - Net Contribution(1986) Actual Budget Deviation
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ACCOUNTING/291 Capital Expenditure vs Revenue Expenditure Carlos Flannigan XACC/291 Instructor: Tameka Johnson October2 ‚2014 Expenditures are unavoidable for any company to exist in the competitive market‚ to expand the business or to find new opportunities to open up beneficial business in those areas‚ etc. Expenditure is defined as payments of cash or cash equivalent for goods or services‚ or a charge against
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Revenue sources Education systems need to raise sufficient revenues to ensure that‚ if used efficiently‚ students may reach appropriate learning goals at each education level. In general‚ countries raise revenues for education through three broad sources: international‚ public and private. A big challenge for many countries is raising sufficient revenues to expand enrollment while maintaining‚ or even raising‚ school quality. While increasing efficiency in the use of resources is necessary‚ countries
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Algebra I Cost-Revenue Business Project This project is designed for you to demonstrate your understanding of systems of linear equations. Before starting‚ read the entire project outline and requirements. During this project you are to do the following: 1) Pair up with a partner and create a business that sells one commodity of your choice (points for creativity). 2) Create a Market Research Survey that will be used to survey 50 students to help you discover what potential customers are looking
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Searching for Revenue-Google The search engine‚ Google‚ has been deemed and is famous for its highly successful search engine. This unit closing case reveals how Google has become a powerful search engine by detailing on how Google works‚ how revenue is made by ADWords‚ and by explaining the expansion of Google. Google works with the web server which sends the query to the index servers then travels to the document servers and finally returns the results back to the users. Revenue for Google is
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Cost and Revenue Curves J Bara ECO/533 Economics for Managerial Decision Making PA04MBA10 April 7‚ 2005 1. Total profit is the product of profit per unit and the quantity. To maximize profit‚ quantity is chosen at the point where marginal cost (MR) is equal to marginal revenue (MR) which is where the two graphs intersect. This is the ideal situation to a profit seeking company. Since price is greater than the Average Total Cost (ATC)‚ for each unit sold the profit per unit is simply the
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Facebook today has become a synonym for people across the world to connect with others and share their thoughts and ideas. THE CASE: Shareholders passed a resolution asking to generate revenues from the increasing user base. The charge could be some monthly fee or from a new unit being added. The latest revenue of Facebook is quoted as $1.6 billion and net income of $500 million. The company is planning to go for an IPO in near future and also the valuation of the company is $100 billion. THE
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