What is the earnings process for each of the following scenarios? (a) A manufacturer makes and sells
Question:
(a) A manufacturer makes and sells farm equipment. The customer picks up the equipment upon purchase. In addition, there is a one-year warranty that will be honored by another company.
(b) A company sells books on-line and ships to the customer. Payment is made via credit cards and the company does not accept any product returns.
(c) A company provides cable television services for residential customers. The customer signs a three-year contract. The wiring was already in place from the prior homeowner.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 73% (15 reviews)
The suggested solution below outlines the main elements in the earnings process Additional intermedi...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Question Posted:
Students also viewed these Accounting questions
-
For each of the scenarios noted in BE6-4 above, when would revenue be recognized under the earnings approach? In BE6-4 (a) A manufacturer makes and sells farm equipment. The customer picks up the...
-
The following are independent situations that require professional judgment for determining when to recognize revenue from the transactions. 1. Costco sells you a one-year membership with a single,...
-
Vaneeta Construction Ltd. began operations in 2014. Construction activity for the first year follows. All contracts are with different customers, and any work remaining at December 31, 2014, is...
-
A portfolio manager owns a bond worth 2,000,000 that will mature in one year. The pound is currently worth $1.65, and the one-year future price is $1.61. If the value of the pound were to fall, the...
-
We trained rats to run a straight-alley maze for food reinforcement. All of a sudden one of the rats lay down and went to sleep halfway through the maze. What does this say about the scale of...
-
The product cell for Dynah Company has budgeted conversion costs of $420,000 for the year. The cell is planned to be available 2,100 hours for produc tion. Each unit requires $12.50 of materials...
-
A number of terms that relate to organizations, the work of management, and the role of managerial accounting are listed below: Choose the term or terms above that most appropriately complete the...
-
1. Which principles of globalization did NR and his colleagues follow when they were growing Infosys into a global powerhouse? 2. According to Hofstedes research, India has a high score on the power...
-
750 350 Question 1 The trial balance below was extracted from the books of Ceria Enterprise as at 31 December 2020: RM RM Capital 10,100 Sales 11,000 Insurance expenses 1,100 Utility expenses 1,000...
-
An appliance store sells a 42 TV for $400 and a 55 TV of the same brand for $730. During a one-week period, the store sold 5 more 55 TVs than 42 TVs and collected $26,250. What was the total number...
-
XYZ Company has manufactured a new product that will be marketed and sold during the current year. To encourage distributors to carry the product, XYZ will not require payment until the distributor...
-
For each of the following scenarios, how will these circumstances affect the recognition of revenue under the earnings approach and under the contract-based approach? (a) The anticipated revenues on...
-
Mega Millions is a multi-state lottery played in most U.S. states. As of this writing, the top cash prize was $656 million, going to three lucky winners in three states. Players pick five different...
-
St. Cecilia's Health System's current culture may be defined by a blend of historical ideals and problems. Given its history of primarily caring for women and children, it is likely to place a...
-
For this assignment, imagine we are the supervisor of case managers who come to us for support and guidance. You have noticed a theme of questions that are frequently asked, which mostly surround...
-
Audio Partners needs to invest in the next level of technology in order to be competitive. The company is exploring the purchase of a new piece of equipment that will cost $1,500,000, at an expected...
-
Choose a real company of their choosing and will focus on ways to help increase the company's digital consumer engagements. For example, how can the company better drive increased revenue, sales,...
-
Four morally and ethically relevant principles have been examined regarding scarcity and include: Treating people with consistency through the use of a lottery or first-come first-served basis...
-
A \(1000-\mathrm{kg}\) car traveling with an \(x\) component of velocity of \(+20 \mathrm{~m} / \mathrm{s}\) collides head-on with a \(1500-\mathrm{kg}\) light truck traveling with an \(x\) component...
-
The Higher the time period of the financial security the higher the. ............... risk. O a. Maturity O b. Default and Maturity Oc. Default O d. Liquidity
-
For banks, what is (a) asset management, (b) liability management?
-
Refer to the definition of assets on page 180. Discuss how a leased building might qualify as an asset of the lessee (tenant) under this definition.
-
Refer to the definition of assets on page 180. Discuss how a leased building might qualify as an asset of the lessee (tenant) under this definition.
-
Refer to the definition of assets on page 180. Discuss how a leased building might qualify as an asset of the lessee (tenant) under this definition.
-
Estimate the intrinsic value of the stock company ABC. Dividends were just paid at $8 per share and are expected to grow by 5%. You require 20% on this stock given its volatile characteristics. If...
-
Crane, Inc., a resort management company, is refurbishing one of its hotels at a cost of $6,794,207. Management expects that this will lead to additional cash flows of $1,560,000 for the next six...
-
Match each of the following transactions with the applicable internal control principle that is being violated
Study smarter with the SolutionInn App