Question
Which of the following is NOT a potentially improper type of revenue recognition? Holding the books open to ensure that all transactions that are in
Which of the following is NOT a potentially improper type of revenue recognition?
Holding the books open to ensure that all transactions that are in process at the quarter end are included in the quarter, even if the shipments are not complete until a day or so afterwards. | ||
Recognizing revenue for transactions that are shipped to a warehouse leased to by the seller for goods that the customer will need in the next six months. The customer has scheduled the future orders but is unwilling to take delivery because they don't have the space to store the goods. | ||
Asking the shipping department to ensure that all outstanding orders are shipped before quarter end. | ||
Recognizing sales for goods that are shipped to the customer with special rights of return, such as trial or evaluation products. |
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