Case 5-3 Joan Holtz

* Partial Revenue Recognition method would recognize the sale and extended warranty at the time of sale. And the rest of the contract revenue will be deferred and recognized when the contract period is complete. This method is acceptable for financial reporting in few situations. The calculation is based on the estimated cost of the product and extended warranty. This method allows the company to recognize most of the revenue at the time of sale, and allows some future revenue recognition.

1. Their current customer segment is a demographic that is aging rapidly, you can expect a shrink in sales.

Net sales consist primarily of revenue from the sale of hardware, software, digital content and applications, peripherals, and service and support contracts. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable. Product is considered delivered to the .customer once it has been shipped and title and risk of loss have been transferred. For most of the Company's product sales, these criteria are met at the time the product is shipped. For online sales to individuals, the Company defers revenue until the customer receives the product because the Company legally retains a portion of the risk of loss on these sales during transit. The Company recognizes revenue from the sale of hardware products (e.g., Macs, iPhones, Wads, iPods and peripherals), software bundled with hardware that is essential to the functionality of the hardware, and third-party digital content sold on the

This memo is intend to present appropriate treatment of the ARO estimation problem experienced by the Lack of Information (LOI) based on the findings from interviews with all 50 of the warehouse managers and on-site visits at each of the 50 locations of its warehouses countrywide. The onsite observations search for any evidence of damages in both the on-site property like the roof, walls, floors and general conditions. The interview with the managers obtains information about the characteristics of the warehouses that are not readily observable. The information obtained is very important in the preparation of the fiscal

Recognizing revenue on October 2, on the day of the event, is reasonable because now, performance has occurred and all of the risk and rewards have been transferred to the corporation holding the event. Revenue is measurable because the price was already set ($60,000) at the time when the contract was signed. Cost is measurable because the event has already occurred and the case states that DCL has incurred cost of $44,000 on the day of the event. Assuming that collectability is reasonably assured due to the size of the event, this method will cause revenue to be recognized in the fiscal period ended on September 30, 2016.

* On Income Statement for December 31, 2011, the number of Revenues, Cost of Goods Sold, Expenses and Net Income will go

Does not commit the company to a formal franchise program, leaving future flexibility in attaining additional distributors.

The analyses indicate that the franchisees are profitable at this level of sales; some franchisees appear to be having cash flow problem, since footnote 7 points out Boston Chicken had been forced to make advances to franchisees to fund local and national advertising; the sales from same store and distribution of same store sales; late payments by franchisees; the total cash floe generated by all stores.

Nevertheless, the majority of customers are very satisfied with the amount of serving along with the quality of their meal as well as the price paid. The strategy of being a low priced high value added has seen problems due to lack of customers which is affecting the bottom line drastically. This inevitable circumstance has put a hold on operations and started an investigation upon various neighboring competitors and their own strategies.

Ignoring the revenue recognition principle could end up distorting an entity's balance sheet/statement of financial position. It is important to note that without adherence to this principle, it could be possible for entities experiencing a decline in sales to hide such an occurrence by modifying some items. In such a case, a refundable cash inflow i.e. a deposit used as security for the possible completion of an agreed upon task at a specified future time could be recognized as revenue. Under this principle, such an inflow should ideally be recognized as a liability and later as revenue only after the said task has been completed.

Roman Holiday defined reacquired franchise rights as “the excess of the net amount assigned to identifiable assets and liabilities recorded upon the acquisition of franchise markets.” It was classified as an intangible asset with an indefinite life. The reacquired franchise rights takes over 29% of Roman Holiday’s total asset and the complicities in the classifications introduce significant risks of material misstatement in the company’s financial statements. The classification should be critically assessed in order to ensure the fair presentation of the company’s financial statement.

-Working with Mary, I feel that one barrier that she is facing in regards to her expressing/accepting her sexual orientation and gender identity is fear of being rejected and shamed by her family. Evidence suggests that for LGBTQ young adults, a heightened level of

Although inventory is an asset it is recorded as a cost, anything recorded otherwise would be unethical and would be hard to report the cost of goods sold once inventory has been depleted.

Timing of revenue recognition is a crucial part in revenue recognition. According to US GAAP, revenue should be recognized when it is realized/realizable and earned (FASB, 1984, Para. 83).

Revenue from the provision of goods and all services is only recognized when the amounts to be recognized are fixed or determinable, and collectability is reasonably assured (Elliot B., Elliot J., 2007)