When do firms recognize revenue?
REVENUE RECOGNITION
Firms recognize revenue when they have (1) completed an earnings process or performed most or all of their obligations to customers, usually the delivery of a product or service, and (2) received cash or a receivable capable of sufficiently reliable measurement. In some cases firms apply the revenue recognition criteria to each component of an arrangement with multiple deliverables. Firms that sell products under long-term contracts, such as construction companies, often recognize revenue using the percentage-of-completion method. U.S. GAAP allows the use of the competed contract method when firms cannot reasonably estimate revenues and costs, whereas IFRS requires a variant of the cost-recovery method under these circumstances.
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Which of the following represents the phases in the SDLC?
A. Plan, analysis, design, test, maintain, develop, implement B. Analysis, plan, design, test, develop, maintain, implement C. Plan, analysis, design, develop, test, implement, maintain D. Analysis, plan, develop, design, test, implement, maintain
During May, Blast sold 500 portable CD players for $50 each. Each CD player cost Blast $25 to purchase and carried a one-year warranty. If 10 percent typically need to be replaced over the warranty period, what amount should Blast debit Product Warranty Expense for in May?
A) $2,500 B) $1,250 C) $250 D) $1,000
SanDisk's MP3 player product line (called the Sansa) has a low relative market share. The MP3 player market is expected to decline over the next few years. In Boston Consulting Group (BCG) portfolio analysis, the Sansa would be considered a dog.
Answer the following statement true (T) or false (F)
An ordinary annuity is defined as an annuity for which the cash flows occur at the beginning of each year or payment period
Indicate whether the statement is true or false.