February 2007
Intermediate to advanced
288 pages
6h 32m
English
book
Crash Course in Accounting and Financial Statement Analysis, Second Edition
by Matan Feldman, Arkady Libman
Content preview from Crash Course in Accounting and Financial Statement Analysis, Second Edition
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Revenue Recognition: To Recognize and When?
Recall the Amazon.com exercise: Amazon.com received a $20 book order on 12/29/07, but it could only record it as revenue once it was shipped on 1/4/08. In some instances deciding when to recognize revenues can be less straightforward. For instance, how should companies engaged in long-term projects recognize revenue?
Basic Principles Revisited: Estimates and JudgmentsRecall the principle of estimates and judgments: Certain measurements cannot be performed completely accurately, and so must utilize conservative estimates and judgments. Bad debt expense is one such account that must be estimated. |
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