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Gianna has just been hired as an accounting at Acme Publishing. Much to her surprise, she finds that the company's income statement recognizes an equal

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Gianna has just been hired as an accounting at Acme Publishing. Much to her surprise, she finds that the company's income statement recognizes an equal proportion of revenue with the publication of every issue of the company's magazines. She thought that the crucial event in the process of earning revenue in the magazine business was the cash sale of the subscription. Not wanting to discuss the issue with her manager, she asks a fellow accounting student why most of the revenue is not recoghized in the period of the cash sale. Discuss the propriety of timing the recognition of revenue in Acme's accounts with: a) the cash sale of the magazine subscription; b) the publication of the magazine every month; c) over time, as the magazines are published and delivered to customers

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