Explanation Revenue recognition: Revenue recognition refers to the principle which tells about the conditions under which the revenue is recognized. It is one of the generally accepted accounting principles (GAAP). Generally, revenue is recognized when the commodity is supplied or given to the customer. Calculation of revenue for the year ending 31 st December for Semester 1: Months Particulars Amount September 1 50% revenue to be recognized of payment ( $ 150 , 000 × 50 % ) = $ 75 , 000 September 1 to November 1 25% revenue to be recognized of payment ( $ 150 , 000 × 25 % ) = $ 37 , 500 November 1 to December 1 25% revenue to be recognized of payment ( $ 150 ,

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ISBN: 9780132162302

Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

Publisher: PEARSON

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Income Statement

Income Statement also commonly called a profit and loss statement, one of the key financial statements (considered together with balance sheet and cash flow statement) which shows the revenues and expenses, as well as the gains and losses of a company fo…

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Intermediate Accounting

Ch. 8.A - Prob. 1Q Ch. 8.A - Prob. 2Q Ch. 8.A - Prob. 3Q Ch. 8.A - Prob. 4Q Ch. 8.A - Prob. 6Q Ch. 8.A - Prob. 7Q Ch. 8.A - Prob. 8Q Ch. 8.A - Prob. 12Q Ch. 8.A - Prob. 13Q Ch. 8.A - Prob. 14Q

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