chapter 4
REVENUE RECOGNITION AND STATEMENT OF EARNINGS
Summary of the Cash-to-Cash Cycle
Applications of Revenue Recognition
Revenue Recognized from Multiple Lines of Business
Earnings from Non-Operating Sources
Earnings from Unusual or Infrequent Events
Variations in Statement of Earnings Formats
Examples of Actual Statements of Earnings
The Return on Investment (ROI) Ratio as a Measure of Performance
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
- Describe the cash-to-cash cycle of a retail company.
- List and explain the basic criteria for revenue recognition.
- Define earnings management as it relates to revenue recognition and explain why and how it can occur.
- Describe the specific revenue recognition criteria and how they apply to the sale of goods, the provision of services, and the use by others of a company's assets.
- Explain the impact that various revenue recognition methods have on earnings recognition.
- Calculate amounts to be recognized under the percentage of completion method.
- Understand the difference between a multi-step statement of earnings and a single-step one. ...
Get Financial Accounting: A User Perspective 6th Canadian Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
