The proportional performance method spreads the profit over the periods in which services are being performed. What

Question:

The proportional performance method spreads the profit over the periods in which services are being performed. What arguments could be made against this method of revenue recognition for newly formed service-oriented companies?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

See More Books

Question Posted: Jan 28, 2012 06:08 AM

See More Questions

What arguments could be made to convince management that working with an outdated needs assessment is not wise?
What arguments could be made for raising the upper limits of the SUTA tax rates?
Briefly describe the unique aspects of revenue recognition for an insurance company.
Sandhill Company manufactures hockey pucks and soccer balls, For both products, materials are added at the beginning of the production process and conversion costs are incurred evenly. Sandhill uses...
What is segment of an organization? Give several examples of segments.
Can classical physics be used to accurately describe a satellite moving at a speed of 7500 m/s? Explain why or why not.
Generate a C4.5-type decision tree.
A 0.25-m3 insulated pistoncylinder device initially contains 0.7 kg of air at 20°C. At this state, the piston is free to move. Now air at 500 kPa and 70°C is allowed to enter the cylinder...
Which of the following industries most closely approximates the perfectly competitive model? (a) Automobile, (b) cigarette, (c) newspaper, or (d) wheat farming.
Richard chooses technique 0 and 2 requiring 10+10-20 efforts and provising 10+11=21 benefits. Hence, 21 is returned as the output Example 2: input1: 3 input2: (10,10,10,10) input3: (10,11,12,15)...
What input and output measures usually are applicable to the proportional performance method for long-term service contracts?
Distinguish among the three different approaches to revenue recognition that await the receipt of cash. How does the treatment of costs incurred vary depending on the approach used?
What is a ferrous material?
At the Business Level there are a couple main strategies that companies use- Cost Leadership and Differentiation. What is the difference between them? Share some examples of companies or specific...
https://youtu.be/c_Eutci7ack After watching the video, what are your thoughts on Power? Would you want to have this Power ? Why would you not want this Power? If you are a manager or want to be a...
Find anti derivative of ( 2 t - 4 + 3 ^ ( 1 / 2 ) ) / t ^ ( 1 / 2 )
How Adidas is using creative narratives to build brand equity Adidas' outdoor division is drawing on the expertise of its wider athletic business while at the same time flexing its creative muscle to...
May I have a word" Alysha Stark popped her head in at the corner office of the Managing Director Mike O' Connor. It's early on a Monday morning. When Alysha, his star Director, starts something this...
The following density function describes the random variable X. f1x2 = d x 25 0 6 x 6 5 10 - x 25 5 6 x 6 10 f1x2 = x - 1 8 1 6 x 6 5 P1X = 1.52 P1X 6 .52 P1X 7 12 a. Graph the density function. b....
A random sample of 10 houses heated with natural gas in a particular area, is selected, and the amount of gas (in therms) used during the month of January is determined for each house. The resulting...
One argument made by those who oppose reducing emissions is, The energy sources we use are always the cheapest and most plentiful which are coal, oil, and natural gas. Wind, solar, etc. are more...
Determining Cash Balance The controller for Weinstein Co. is attempting to determine the amount of cash and cash equivalents to be reported on its December 31, 2010, balance sheet. The following...
Determine Cash Balance Presented below is a number of independent situations. For each individual situation, determine the amount that should be reported as cash. If the item(s) is not reported as...
Financial Statement Presentation of Receivables Patriot Company shows a balance of $241,140 in the Accounts Receivable account on December 31, 2010. The balance consists of the following. Illustrate...
Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at...
3. How much life insurance do you need? Calculating resources - Part 2 Aa Aa E Paolo and Maria Rossi have completed Step 1 of their needs analysis worksheet and determined that they need $2,323,000...
On March 1, LGE asks to extend its past-due $1,200 account payable to Tyson, Tyson agrees to accept $200 cash and a 180-day, 8%, $1,000 note payable to replace the account payable. (Use 360 days a...

The proportional performance method spreads the profit over the periods in which services are being performed. What

Question:

Step by Step Answer:

When a service company is organized and its activities grow rapi...View the full answer

Intermediate Accounting

Students also viewed these Accounting questions