Wednesday, 12 April 2017

ACC 556 Week 2 Chapter 4 Exercise

ACC 556 Week 2 Chapter 4 Exercise

Q
A flower shop makes a large sale for $1,000 on November 30. The customer is sent a statement on December 5 and a check is received on December 10. The flower shop follows GAAP and applies the revenue recognition principle. When is the $1,000 considered to be recognized?
Q
Why do generally accepted accounting principles require the application of the revenue recognition principle?
Q
If a resource has been consumed but a bill has not been received at the end of the accounting period, then:



























ACC 556 Week 2 Chapter 4 Exercise

Q
A flower shop makes a large sale for $1,000 on November 30. The customer is sent a statement on December 5 and a check is received on December 10. The flower shop follows GAAP and applies the revenue recognition principle. When is the $1,000 considered to be recognized?
Q
Why do generally accepted accounting principles require the application of the revenue recognition principle?
Q
If a resource has been consumed but a bill has not been received at the end of the accounting period, then:

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