Revenue Recognition Method

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Answer 1:
The principle of revenue recognition states that the revenue can be recognized by following any of the following 10 methods:
1. Recognition under the cash sales method: under this, the revenue is recognized only when the cash in respect of the same is received.
2. Accrual method: under this, the position of the seller is set as the recipient for the purposes of the advance payment before the actual delivery takes pace. In such cases, the seller is liable until and unless the good or the services are delivered.
3. Revenue recognition for the installment sales method: under this, the sales are recorded on the basis of installments, that is, the sale is recorded to the tune of the amount that has been received for the same. This type
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Recognition of revenue under brokerage agreement: under this, there are some of the brokers that are able to handle the customer transactions as if they inure the business. This tends to reflect the substantial amounts in terms of the gross sales but also reflects a very limited amount of gross profit. This method cash is used when it comes to observing some of the rules as if the broker intends to work clearly along with the guidelines that have been set up both under the IRS and the SEC.
7. Recognition of revenue under appreciation method: appreciation is defined as the increase in the value of the product or the goods that is held by the company for the purposes of main trade. This is followed in the case of property is sold.
8. Recognition of revenue under the proportional performance method: under this method, the revenue is recognized when the costs are incurred. The same cannot be assigned to a specific portion of the amount that has been completed but instead of allowing for the estimation for the purposes of recognizing the gains. This method of recognising the revenues is used when the services are provided for the software related. This method requires the identification of all the direct costs for the purposes of initiating the launch or the commencement of the services that are to be
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(Accounting tools, 2015)
Therefore, the accrual basis of accounting must be used.
Answer 2:
No, even if such is the case, the revenue shall still be recognized using the accrual basis of accounting.
But the only difference shall be that the revenue would be recognized or will be recorded in the books of accounts after the period in which the tickets can be returned by the customer is expired. Answer 3:
When the agents have been contracted for the purposes of the selling and the marketing responsibilities, then the revenue shall be recognized only when physical possession, the risks and the rewards have been transferred on to the buyer.
Answer 4:
The accounting profession is concerned with the recording of the entries in the books of accounting, the preparation of the balance sheet, profit and loss account etc. but the process of checking the signatures from the records is the like conducting an audit which is the work of an auditor and not of an accountant. Hence, he is not well equipped to comply with the
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