Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I got some wrong on these ones help please Match the following scenario with the revenue recognition concept under the five-step approach. It is likely

image text in transcribed

I got some wrong on these ones help please

Match the following scenario with the revenue recognition concept under the five-step approach. It is likely that a customer will pay for the 4 service and the company has delivered the order. A company offers to manufacture and install 3 the windows. Each window is custom made and requires significant modification to fit, at the customer's site. The Company offers all customers a warranty 5 of one year on equipment sold. Company D manufactures and installs flooring for use in commercial real estate. 3 - Customers may purchase from Company D -only the flooring, only the installation, or both the flooring and the installation. The Company sells merchandise to 3 customers for cash. However, it allows for a 90 day return policy. Upon completion of the contract, the cash 3 flow situation at both companies is unchanged. A construction company regularly engages in projects and can reasonably estimate the 6 probability of completing a job on-time. The contract includes a bonus, if the work is completed by August 31, 2025. 1. A contract for revenue recognition purposes exists. 2. A contract does not exist for revenue recognition purposes. 3. More than one performance obligation under a revenue contract exists. 4. Only one performance obligation exists for this revenue contract. 5. The matter adjusts the contract price in the direction of an increase. 6. This matter adjusts the contract price in the direction of a decrease. This matter has no effect on the contract price, 7. but instead creates a liability under the asset-liability approach. 3 Coupon rewards are provided to customers based on past purchases. The Company offers a 2% discount if the 5 customer pays within 30 days. Most customers pay within 30 days and take the discount. A Company offers extended payment terms that go beyond two years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Connect 2-semester For Auditing & Assurance Services A Systematic Approach

Authors: Author

10th Edition

1259292045, 9781259292040

More Books

Students also viewed these Accounting questions

Question

Identify ways to increase your selfesteem.

Answered: 1 week ago