Essay about Vitamix Revenue Recognition

necessary journal entries for each year (credit Various Accounts for construction costs incurred). 2011 2012 -200,000 2013 4,000,000 4,050,000 -50,000 Revenue Expense Gross Profit All the journal entries remain the same except for entry 2). 2012 Entry: Loss on Long-term Contracts CIP (loss) 2013 Entry: Construction Expense CIP (loss) Revenue 200,000 200,000 4,050,000 50,000 4,000,000 2. Bounce Computer Corp allows customers to pay in installments for their products. Bounce only had

CHAPTER 18 REVENUE RECOGNITION MULTIPLE CHOICE—Conceptual Answer​No.​Description ​c​1.​Revenue recognition principle. ​b​2.​Definition of "realized." ​a​3.​Definition of "earned." ​d​4.​Recognizing revenue at point of sale. ​d​5.​Recording sales when right of return exists. ​c​6.​Revenue recognition when right of return exists. ​d​7.​Revenue recognition when right of return exists. ​b​8.​Appropriate accounting method for long-term contracts. ​c​9.​Percentage-of-completion method

Accounting Standards Update 2014-09 Revenue from Contracts with Customers (Topic 606) ACCT 610 Financial Reporting and Disclosure Daisy Gaytan California State University, San Bernardino Abstract 1. General Accepted Accounting Principles (GAAP): The Revenue Recognition Principle Revenue recognition is a difficult matter in accounting. The company’s results differ depending of the method used to recognized earnings. This is a complex situation since business activities are broad

CASES Real World Case 5-1 Requirement 1 A bill and hold strategy accelerates the recognition of revenue. In this case, sales that would normally have occurred in 1998 were recorded in 1997. Assuming a positive gross profit on these sales, earnings in 1997 is inflated. Requirement 2 A customer would probably not be expected to pay for goods purchased using this bill and hold strategy until the goods were actually received. Receivables would therefore increase. Requirement 3 Sales that would

Therefore, the arrangement for the system would not be within the scope of ASC 985-605 and would likely fall within the scope of ASC 605-25 and 605-20. Revenue Recognition – April 30, 2012 Agreement Based on the information outlined above, the revenue recognition accounting would follow that for Multiple-Element Arrangements as outlined in ASC 605-25. The accounting units of system and PCS will be accounting for separately, because the criteria of ASC 605-25-5-a

Overlook Video Stores Inc. (OVS)    To: Ms. Alice Hartford, Partner  From: CA, Audit Senior  Re: Planning for the year end 2009 of OVS and requested control deficiency information     Engagement Overview  The purpose of this memo is to document the planning of the financial statement audit  st​ engagement of our client Overlook Video Stores Inc. (OVS) for the year ended December 31​ ,  2009.  OVS has been our client since its inception in 1998.  This year’s audit will commence  January, 2010, th

INTRODUCTION Revenue recognition is one of the top causes for financial statement restatements. In addition, revenue recognition is an area commonly questioned by the Securities and Exchange Commission (SEC) staff in their review of public filings and resultant comment letter process. Furthermore, revenue recognition is often prey to financial fraud. Coverage of revenue recognition in intermediate accounting courses is typically limited to learning and applying the criteria for revenue recognition outlined

recognized as revenue? A: FASB codification (605-28) milestone method SolvGen Inc. is gonging to use the milestone method to recognize the revenue. The milestone method is a recently issued method of recognizing revenue for research and development arrangements under which consideration to be received by the vendor is contingent upon the achievement of certain milestones(FASB codification (605-28) milestone method). Under the commonly applied milestone method, a vendor recognizes revenue in the

2. Gilmore whistleblowing in the given situation lends itself to much ethical debate. For this discussion, one should assume SCE is in violation of the AICPA Code of Professional Conduct by recognizing revenue in the current period as detailed in the previous issue. To first consider the ethics of Gilmore whistleblowing, it is essential to define the steps that should be taken by her before she considers whistleblowing. For this, one can use the standard on ethical conflicts outlined in the AICPA

Exam Question 4 According to FASB webpage, revenue is a crucial number to users of financial statements in assessing a company’s performance and prospects. However, revenue recognition requirements in U.S. GAAP differ from those in IFRS, and both sets of requirements are considered to be in need of improvements. Accordingly, the FASB and the IASB initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS that would 1)