FinAcct - Revenue Recognition

Card Set Information

Author:
rsgraham1
ID:
123528
Filename:
FinAcct - Revenue Recognition
Updated:
2011-12-13 21:25:03
Tags:
TBird EMBA XXI Revenue Recognition Dale Davidson
Folders:

Description:
This set of cards is revenue recognition
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user rsgraham1 on FreezingBlue Flashcards. What would you like to do?


  1. What must happens in order to trigger Revenue Recognition?
    You must be able to identify a "Critical Event" that triggers recognition.

    That event which establishes the first point in time where revenue meets all conditions for recognition.
  2. What are the conditions for Revenue Recognition?
    • 1. Earned
    • 2. Realized or Realizable
    • 3. Measurable
    • 4. Special Situation
  3. What is the definition of an Earned condition for revenue recognition?
    -substantially everything done to indicate that the earning process is completed; often, it is the point in time where the revenue could be legally claimed.
  4. What is the definition of an Realized or Realizable condition for revenue recognition?
    - to be recognized, there must be a reasonable expectation of collection.

    Installment and cost recovery methods.
  5. What is the definition of an Measureable condition for revenue recognition?
    -revenue must be subject to reasonal estimation to be recognized.
  6. What is the definition of an Special Situation condition for revenue recognition?
    - includes Commodities, franchises, retail land sales, insurance, buy-back checks.

What would you like to do?

Home > Flashcards > Print Preview