ANSWER What marks the point of revenue recognition forconsignment sales?a) When goods are shipped to consigneeb) When consignee receives the goodsc) When goods are sold to end customerd) When payment is received from consignee

Explanation of Revenue Recognition: This is the accounting principle that determines when and how…

Answered: What marks the point of revenue…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 19MC: At what point does revenue recognition occur? A. When the purchase order is received B. When the...

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Similar questions

Which of the following is an example of a contra revenue account? A. sales B. merchandise inventory C. sales discounts D. accounts payable
Which of the following is not a characteristic of FOB Destination? A. The seller pays for shipping. B. The seller owns goods in transit. C. The point of transfer is when the goods leave the sellers place of business. D. The point of transfer is when the goods arrive at the buyers place of business.
At what point does revenue recognition occur? A. When the purchase order is received B. When the seller receives the money for the job C. When the seller has met performance D. When the purchaser makes payment
Which of the following is not a characteristic of FOB Shipping Point? A. The buyer pays for shipping. B. The buyer owns goods in transit. C. The point of transfer is when the goods leave the sellers place of business. D. The point of transfer is when the goods arrive at the buyers place of business.
Under the realization principle, revenue from sale of products is recognized a. At date of delivery to the customers C. When the customers are billed b. When the inventories are readied for shipment D. Upon receipt of cash payment
The realisation concept determines when goods sent on credit to customers are to be included in the sales figure for the purpose of computing the profit or loss for theaccounting period. Which of the following tends to be used in practice to determine when to include a transaction in the sales figure for the period. When the goods havebeen:a. dispatched b. invoiced c. delivered d. paid forGive reasons for your answer.
A can defined as a partial payment remunerated as an advance on the sales person's commission. O a. Draw O b. Purchase O c. Revenue O d. Charge
What is the account title used for revenue when goods are delivered to customers?
In a sales transaction, which of the following is an assertion of existence or occurrence:a. All sales transactions that occur are recordedb. Sales transactions have been recorded at the correct periodc. The sales transaction has been recorded according to the amount that has been sent and the correct amount has been invoicedd. Sales transactions that have been recorded are valid sales to customers
Which of the following functions is not included in the typical expenditure cycle involving goods? A. Disbursing payments to the vendors B. Placing an order for goods or services C. Posting to the accounts payable subsidiary ledger D. Processing a credit memo E. Ascertaining the validity of payment obligations
With consignment sales, at the time of the sale to a third party: the consignee only records revenue the consignor only records revenue the customer records the sale the consignee and the consignor record revenue
1. Sales revenue should be recognized when: a. sales are invoiced. b. payment is received from the customer. c. the customer's order is received. d. goods are shipped.

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What marks the point of revenue recognition for consignment sales? a) When goods are shipped to consignee b) When consignee receives the goods c) When goods are sold to end customer d) When payment is received from consignee