Revenue recognition: Revenue recognition is referred to the time of recognition of revenue by the business firms in the books for stating the respective revenue in the statement of profit and loss in the respective year and time. It does not make difference whether it is received or not. Accrual Accounting: In accrual-accounting method, the revenue is recognised at the point of sale i.e. when the possession is transferred to the customer. The probable consequences for the behaviour of Alan for increasing the sales of the company in the future periods.

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Answer 1

Question

Chapter 5, Problem 89.2C

To determine

Revenue recognition:

Revenue recognition is referred to the time of recognition of revenue by the business firms in the books for stating the respective revenue in the statement of profit and loss in the respective year and time. It does not make difference whether it is received or not.

Accrual Accounting:

In accrual-accounting method, the revenue is recognised at the point of sale i.e. when the possession is transferred to the customer.

The probable consequences for the behaviour of Alan for increasing the sales of the company in the future periods.

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Answer 2

Question

Chapter 5, Problem 89.2C

To determine

Revenue recognition:

Revenue recognition is referred to the time of recognition of revenue by the business firms in the books for stating the respective revenue in the statement of profit and loss in the respective year and time. It does not make difference whether it is received or not.

Accrual Accounting:

In accrual-accounting method, the revenue is recognised at the point of sale i.e. when the possession is transferred to the customer.

The probable consequences for the behaviour of Alan for increasing the sales of the company in the future periods.

Expert Solution & Answer

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Answer 3

Question

Chapter 5, Problem 89.2C

To determine

Revenue recognition:

Revenue recognition is referred to the time of recognition of revenue by the business firms in the books for stating the respective revenue in the statement of profit and loss in the respective year and time. It does not make difference whether it is received or not.

Accrual Accounting:

In accrual-accounting method, the revenue is recognised at the point of sale i.e. when the possession is transferred to the customer.

The probable consequences for the behaviour of Alan for increasing the sales of the company in the future periods.

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 89.2C

To determine

Revenue recognition:

Revenue recognition is referred to the time of recognition of revenue by the business firms in the books for stating the respective revenue in the statement of profit and loss in the respective year and time. It does not make difference whether it is received or not.

Accrual Accounting:

In accrual-accounting method, the revenue is recognised at the point of sale i.e. when the possession is transferred to the customer.

The probable consequences for the behaviour of Alan for increasing the sales of the company in the future periods.

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 89.2C

To determine

Revenue recognition:

Revenue recognition is referred to the time of recognition of revenue by the business firms in the books for stating the respective revenue in the statement of profit and loss in the respective year and time. It does not make difference whether it is received or not.

Accrual Accounting:

In accrual-accounting method, the revenue is recognised at the point of sale i.e. when the possession is transferred to the customer.

The probable consequences for the behaviour of Alan for increasing the sales of the company in the future periods.

Answer 6

Chapter 5, Problem 89.2C

To determine

Revenue recognition:

Revenue recognition is referred to the time of recognition of revenue by the business firms in the books for stating the respective revenue in the statement of profit and loss in the respective year and time. It does not make difference whether it is received or not.

Accrual Accounting:

In accrual-accounting method, the revenue is recognised at the point of sale i.e. when the possession is transferred to the customer.

The probable consequences for the behaviour of Alan for increasing the sales of the company in the future periods.

Answer 7

Chapter 5, Problem 89.2C

To determine

Revenue recognition:

Revenue recognition is referred to the time of recognition of revenue by the business firms in the books for stating the respective revenue in the statement of profit and loss in the respective year and time. It does not make difference whether it is received or not.

Accrual Accounting:

In accrual-accounting method, the revenue is recognised at the point of sale i.e. when the possession is transferred to the customer.

The probable consequences for the behaviour of Alan for increasing the sales of the company in the future periods.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 5 - When is revenue recognized?Ch. 5 - When is a performance obligation satisfied?Ch. 5 - At what amount should sales revenue be recorded...Ch. 5 - Prob. 4DQ Ch. 5 - Prob. 5DQ Ch. 5 - Prob. 6DQ Ch. 5 - Prob. 7DQ Ch. 5 - Prob. 8DQ Ch. 5 - Prob. 9DQ Ch. 5 - Why is the direct write-off method not GAAP?

Solution Summary: The author explains that revenue recognition is referred to the time of recognition of revenue by the business firms in the books for stating the respective revenue in a statement of profit and loss.

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