With regard to segregation of duties, rule one is that transaction authorization and transaction processing should be separated. What does this require in the revenue cycle? Please answer this. Thank you
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With regard to segregation of duties, rule one is that transaction authorization and transaction processing should be separated. What does this require in the revenue cycle? Please answer this. Thank you
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- Provide two inherent risk factors in the revenue cycle and identify the accounts that are likely to be overstated or understated and explain why.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.The separation of operational responsibility from record keepingis meant to prevent different types of misstatements than the separation of the custodyof assets from accounting. Explain the difference in the purposes of these two types ofseparation of duties.
- In applying the revenue recognition principle, which of the following statements regarding multiple performance obligations is incorrect? A. If the transaction has multiple performance obligations, the transaction price is allocated among the different performance obligations. B. Revenue is recognized after all performance obligations are satisfied. C. A contract might have multiple performance obligations. D. The business can recognize revenue when (or as) it satisfies each performance obligation by transferring a good or service to a customer.True or False When services are delivered by performing more than one act, revenue should be recognized as the various acts that make up the entire transaction occurThe third step in the process for revenue recognition is to (Enter 1, 2, 3, or 4 that represents the correct answer): determine the separate performance obligations in the contract. allocate transaction price to the separate performance obligations. determine the transaction price. determine the amount of revenue when each performance obligation is satisfied.
