BUSI 2160U Study Guide - Comprehensive Midterm Guide: California State Route 14, Accounts Payable, Income Statement
Document Summary
In - class questions - when should revenue be recognized: (always go through the criteria) Looking at if interest should be met today it will be a no because the 1st criteria is not met due to the consumer has no yet enjoyed the product as it has only been 1 day. Option 2 (dec 31st: the criteria for the delivery is not met, but the criteria for the interest is met and that means we should recognized the interest on. Option 1 (should it be recognized on oct 16) The smartphone should be recognized on purchase (oct 16th) for . 3 year warranty (: this has not been met. Once the control of the seller is done which is when the 3 year period is completed that is when awesome buy will recognize revenue for the warranty for . 1 year gift card (: this is not met.
