Under what conditions should a company disclose the amount of sales from a major customer?
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Under what conditions should a company disclose the amount of sales from a major customer?
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- Which of the following information items with regard to a major customer must be disclosed?a. The identity of the major customer.b. The percentage of total sales derived from the major customer.c. The operating segment making sales to the major customer.d. The geographic area in which sales to the major customer are made.How does the timing of revenue recognition impact a company's financial statements and profitability?What criteria determine whether a company can recognize revenue over time?
- What are the differences between accounting for service companies and accounting for merchandise companies?How do you find total sales in financial accounting?What does the phrase "Revenue is recognized at the point of sale" mean? (Assume the company reports using ASPE.) a.Revenue is recorded in the accounting records when the goods are sold to a customer and reported on the statement of earnings when the cash payment is received from the customer. b.Revenue is recorded in the accounting records and reported on the statement of earnings when the cash is received from the customer. c.Revenue is recorded in the accounting records when the cash is received from a customer and reported on the statement of earnings when sold to the customer. d.Revenue is recorded in the accounting records and reported on the statement of earnings when goods are sold and delivered to a customer.
- What is the significance of the revenue cycle in a company's financial statements?What is a sensible credit period? Should the credit period for your company's sales vary depending on the industry in which you are operating?Which of the following is classified as current non-trade receivabke? A. Advances to affiliates B. Supplier's debit balances C. Accounts receivable D. Customers's credit balance