Discuss when each of the following businesses would be likely to recognise revenues: 1. A shipbuilding company.
Question:
Discuss when each of the following businesses would be likely to recognise revenues:
1. A shipbuilding company.
2. A magazine company for which yearly subscriptions are received yearly in advance and where the magazines are posted each month.
3. A coal-mining company that has a long-term contract to supply a local company at a set price.
4. A printer.
5. An installer of hot-water systems.
6. A telecommunications company that provides local and interstate calls.
7. An airline.
8. A real estate developer who constructs ‘speculative’ houses and later sells them.
9. An engineering business that receives orders for special-purpose machinery accompanied by deposits.
10. A meat pie stand at a football ground.
Step by Step Answer:
Recognizing revenue is an important aspect of accounting that determines when a business officially records income from its operations The timing of revenue recognition can vary based on the nature of ...View the full answer
Financial Accounting An Integrated Approach
ISBN: 9780170411028
7th Edition
Authors: Ken Trotman, Elizabeth Carson
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