Explain revenue recognition for franchises.
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A: The answer :
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Explain revenue recognition for franchises.
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Solved in 2 steps
- Determine the timing of revenue recognition with respect to licenses, franchises, and other common arrangements.When is revenue recognized by service provider? By a merchandiser? By a manufacturer? Give examples of internal control procedures a business enterprise must implement.comparison equity and revenue between service and retail industry
- The revenue recognition model promises to provide a coherent and consistent revenue recognition framework for all companies to follow. Do you agree? Explain.Correctly identify the main business lines or revenue drivers of CIBC,comment on value of each line.True or False & Why? : Comparability between businesses will be improved since ASC 606 establishes clear standards for when and how to recognize revenue by industry.
- What criteria determine whether a company can recognize revenue over time?Explain an example how to record sales revenue.Each economic event or transaction will have a dual effect on financial position. Explain what is meant by this dual effect. and please describe how revenue recognition relates to transferring goods or services.