elaborate with details

1. After the presentation of your report on the examination of the financial statements to the board of directors of NCAA CORPORATION, one of the new directors expresses surprise that the income statement assumes that an equal proportion of the revenue is earned with the publication of every issue of the company's magazine. He feels that the "crucial event" in the process of recognizing revenue in the magazine business is the cash sale of the subscription. He says that he does not understand why most of the revenue cannot be recognized in the period of the sale. Instructions: Discuss the propriety of timing the recognition of revenue in NCAA CORPORATION's accounts with respect to the following. The cash sale of the magazine subscription. . The publication of the magazine every month. Both events, by recognizing a portion of the revenue with the cash sale of the magazine subscription and a portion of the revenue with the publication of the magazine every month. 2. An accountant must be familiar with the concepts involved in determining earnings of a business entity. The amount of earnings reported for a business entity is dependent on the proper recognition, in general, of revenue and expense for a given time period. In some situations, costs are recognized as expenses at the time of product sale. In other situations, guidelines have been developed for recognizing costs as expenses or losses by other criteria. Instructions: Explain the rationale for recognizing costs as expenses at the time of product sale. What is the rationale underlying the appropriateness of treating costs as expenses of a period instead of assigning the costs to an asset? Explain. In what general circumstances would it be appropriate to treat a cost as an asset instead of as an expense? Explain. Some expenses are assigned to specific accounting periods on the basis of systematic and rational allocation of asset cost. Explain the underlying rationale for recognizing expenses on the basis of systematic and rational allocation of asset cost. Identify the conditions under which it would be appropriate to treat a cost as a loss