Chapter 3, Problem 3ISTQ

If the initial fee is collectible over an extended period and there is a significant uncertainty of its collection in full, the fee is  A. deferred of recognition as revenue B. recognized as revenue when collected C. not recognized as revenue at all. D. recognized as revenue in full

Understand the fundamental concepts related to revenue recognition and measurement.

Which is not a scenario wherein revenue is recognized over time? a. The customer simultaneously receives and consumes the benefits by the entity’s performance b. The entity’s performance creates or enhances an asset that will be transferred to the customer at a future date c. The entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date d. All of the above are scenarios wherein revenue is recognized over time e. None of the above

under the cost recovery method of revenue recognition, a. Income is recognized immediately b. Income is recognized when the cash received from the sale of the product is greater than the cost of the product c. Income is recognized on a proportionate basis as cash is received on the sale of the product d. None of the above

Explain the current environment regarding revenue recognition.

Discuss the fundamental concepts related to revenue recognition and measurement.

What are Revenue Recognition and Matching Principles?

Describe the Fundamental Issues Related to Recognizing Revenue.

Discuss the realization principle and how it is applied in the recognition of revenue. Does the receipt of cash for custom-ers necessarily coincide with the recognition of revenue? Explain.