Revenue Recognition

Using Word or Excel, create a diagram or model that represents the series of criteria found in CON5.

Using Word or Excel, create a diagram or model that represents the process of the revenue recognition process.

Guidance:

Diagram the process of revenue recognition.

Start with the process.

What starts the process?

Think through from the business perspective what happens when you purchase a good or service?

What are the journal entries?

What are the accounts?

What happens to the accounts?

Whats the impact on the financial statements?

Which financial statements?