disclosures. Accounting policies differ from accounting principles in that the principles are the rules and the policies are a company’s way of adhering to the rules. Revenue Recognition: Revenue recognition determines the accounting period‚ in which revenues and expenses are recognized. General Mills recognize sales revenue when the shipment is accepted by their customer. Sales include shipping and handling charges billed to the customer. We generally do not allow a right of return. However
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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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Revenue Recognition 1a Identify and explain when the company recognizes revenue The Consolidated Statement of Earnings on page 39 of the 2011 10K describes the 2 sources of revenue: retail sales and credit cards. Page 33 of the notes state that they recognize revenue from sales at their retail stores at the point of sale‚ net of an allowance for estimated sales returns. Page 43 describes revenue from sales to customers shipped directly from stores and online and catalog sales includes shipping
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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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1. The three primary divine attributes: Omnipotence: God has maximal powerful‚ is all powerful‚ capable of doing anything Omniscience: God is all seeing and all knowing Omnibenevolence: God does only good‚ God is morally perfect and is considered the source of morality Two secondary divine attributes: Omniprescence: God is present everywhere at the same time Incorporeal: God is not composed of matter‚ has no material existence
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After years of falling revenues‚ in 1999-2000 Doordarshan (DD)1 had a revenue growth at 50%. In 1999-2000‚ DD earned revenues of Rs 6.1mn compared to Rs 3.99 mn in 1998-99. DD showed signs of revival with the launch of DD World (a channel for NRIs) and had relative success with some of its regional channels (Refer Table I for different DD channels). However by the end of 2000-01‚ DD’s honeymoon with success seemed to be over. In 2000-01‚ DD’s revenues were projected to grow at 6-15% while private
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CHAPTER 18 Revenue Recognition ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) | | |Brief | | | Concepts | |Topics |Questions |Exercises |Exercises |Problems |for Analysis | |*1. Realization and recognition; sales |1‚ 2‚ 3‚ 4‚ |1‚ 2‚ 3‚ |1‚ 2‚ 3‚ 4‚
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gaming industry‚ both from the viewpoint of someone that is interested in playing computer games and as an investor. The topic that I have chosen to address is the issue of revenue recognition. Revenue Recognition Analysis I started by looking at EAs annual report (Form 10-K) for the fiscal year ending March 31‚ 2007. Revenue recognition is discussed in some detail.
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Assignment 4 Case 7.2 Revenue Recognition Associated with Frequent Flier Miles Continental Airlines: Revenue is deferred and recognized when transportation is provided • Revenue is realized‚ and earned. The carrier has performed its duty‚ the service has been preformed. The amount of the claim is known AMR (American): Revenue is deferred and recognized over the period approximating mileage credits are used • Because there is no actual way of knowing when/if mileage will be used‚ it is not
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REVENUE RECOGNITION MCDONALD ’S CORPORATION INTRODUCTION McDonald’s and Burger King have been in competition for over 50 years. Similar companies can choose different revenue recognition methods that can cause them to appear different. This report’s purpose is to explain McDonald’s revenue recognition policies and methods in comparison to Burger King’s. DISCUSSION FOR ACCOUNTING POLICIES AND METHODS McDonald’s and Burger King’s revenues mainly consist of two things‚ sales and franchise fees
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