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| Topic: |
History
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| Number of pages / Number of words: |
5 / 1239 |
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Except for warranty, which will be recorded as repair expense when it incurs in consequent years hence no concern in conservatism, $2,500,000 meets the criteria of revenue recognition – risk and rewards of ownership transferred, collectible and measurable, performance is achieved. Therefore, revenue should be recognized accordingly...
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Therefore, revenue should be recognized accordingly.
Record $1,500,000 Unearned Revenue under Liabilities as an obligation to a third party. Doing this, accountants virtually lower assets. Although this is more realistic under current situation, meeting Mr. Mouse’s needs of fair presentation and bankers’ needs of more compliance with GAAP, this may not be in favor of Ms...
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