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AQB manufactures and sells printers in D-land where the currency is the D$. The company also occasionally exports to C-land. You work for the Financial
AQB manufactures and sells printers in D-land where the currency is the D$. The company also occasionally exports to C-land. You work for the Financial Director and are responsible for producing the financial statements. Customer 1: Orders laser printers from AQB. Unfortunately, the laser printers are held up in customs border control so have yet to arrive at the customer's premises. AQB is responsible for delivery to the customer. Customer 2: Orders several mobile printers for which they make an advanced payment to AQB. These mobile printers have not begun to be manufactured yet. You are considering both customer orders with a view to recognising revenue in the financial statements. Which of the customers' revenue should be recognised in the financial statements? Solution A.Customers 1 and 2. B.Customer 1 only. C.Customer 2 only. D.Neither Customer 1 nor 2
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