ZuoTi.Pro
Question

According to the U.S. GAAP Conceptual Framework, firms recognize revenue when it is realized or realizable,...

According to the U.S. GAAP Conceptual Framework, firms recognize revenue when it is realized or realizable, and earned. The SEC has provided four criteria that it believes must be met for revenue to be both realized/realizable and earned. What are the four criteria? Provide the Codification reference.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Followings are the four criteria for revenue to realized/realizable and earned

1) Persuasive evidence of an arrangement exist

2) Delivery has occurred or services have been rendered

3)The seller's price to the buyer is fixed or determinable, and

4) Collectibility is reasonably assured

0 0
Add a comment
Know the answer?
Add Answer to:
According to the U.S. GAAP Conceptual Framework, firms recognize revenue when it is realized or realizable,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • QUESTIONS 1. What is a conceptual framework? Why is a conceptual frameworke ry in financial accounting?...

    QUESTIONS 1. What is a conceptual framework? Why is a conceptual frameworke ry in financial accounting? 2. What is the primary objective of financial reporting? 3. What is meant by the term qualitative characteristics of accounting informat "? 4. Briefly describe the two fundamental qualities of useful accounting information 62 Chapter 2 Conceptual Framework for Financial Reporting 5. How is materiality for immateriality) related to the proper presentation of financial statements? What factors and mesures should be considered in essing...

  • [25] According to the FASB’s conceptual framework, which of the following is an essential characteristic of...

    [25] According to the FASB’s conceptual framework, which of the following is an essential characteristic of a liability? A. Liabilities must require the obligated entity to pay cash to a recipient entity. B. Liabilities must be legally enforceable. C. The identity of the recipient entity must be known to the obligated entity before the time of settlement. D. Liabilities are obligations resulting from previous transactions or events. [26] Consolidated financial statements are prepared when a parent-subsidiary relationship exists in recognition...

  • Questions: I) The percentage of completion method is an application of the matching principle: True or...

    Questions: I) The percentage of completion method is an application of the matching principle: True or False? II) On which financial statement at what amount are account receivable reported? a) Balance sheet at the amount owed by customers b) Income statement at the net uncollectible amount c) Income statement at the amount written off d) Balance sheet at the net realizable value III) Under the allowance method of recognizing uncollectible accounts, the entry to write off an uncollectible account: a)...

  • I am having trouble understanding the questions blank. 1. Conceptual Framework Matching: Full-Disclosure A. The long...

    I am having trouble understanding the questions blank. 1. Conceptual Framework Matching: Full-Disclosure A. The long life of a company can be broken into a series of shorter time periods H Revenue B. The assumption that a company will continue to operate indefinitely. Periodicity Transactions of the business are separate from transactions of the owners. B Going Concern D. All relevant information should be provided to users. 6 E. Consensus among different measurers. Historical Cost Verifiability Small amounts unlikely to...

  • 20. What is a performance obligation, and how is it used to determine when revenue should...

    20. What is a performance obligation, and how is it used to determine when revenue should be recognized? 21. What are the five steps used to determine the proper time to recognize revenue? 22. Selane Eatery operates a catering service specializing in business luncheons for large corporations. Selane requires customers to place their orders 2 weeks in advance of the scheduled events. Selane bills its cus- tomers on the tenth day of the month following the date of service and...

  • Question 1 For a firm to recognize revenue, it must 1 point Have delivered something to...

    Question 1 For a firm to recognize revenue, it must 1 point Have delivered something to the customer have received at least some cash from the customer be earned and realized/realizable either have received cash or have a signed contract 2. Question 2 Your friend Yong has a company making and selling watches with bands that are customized to match university colors. The business started locally, but now has expanded around the world. His strategy is to sell in bulk...

  • 1.Which of the following statements is true regarding the new ASC Topic 606 for revenue recognition?...

    1.Which of the following statements is true regarding the new ASC Topic 606 for revenue recognition? Multiple Choice The focus is on when the firm has earned the consideration to which it is entitled. Early adoption is not allowed. The new rules are more rules-based than principle-oriented. Under IFRS, both public and non-public firms must adopt by 2018 2.Assuming the requirements for recognizing revenue over time are met, the measure of completion is computed by dividing Multiple Choice profits earned...

  • can i get the introduction and conclusion with references thanks Part B (1700 words) The Australian...

    can i get the introduction and conclusion with references thanks Part B (1700 words) The Australian Securities and Investment Commission (ASIC 2014) announced that one of its areas of focus on financial reports of listed entities and other entities of public interest was accounting policy choices. According to ASIC (2014), preparers and auditors need to focus on the appropriateness of key accounting policy choices and that its surveillance will focus on material disclosures of key accounting policy choices. These include...

  • Part B: Problem Set - Vertical FDI (65 points total): Consider two firms. The first firm...

    Part B: Problem Set - Vertical FDI (65 points total): Consider two firms. The first firm is based in Slovenia and produces ball bearings (upstream firm). The cost of producing ball bearings is 6 per unit. The second firm is based in Greece. This firm produces machines (downstream firm). To produce one machine, the Greek firm must buy 2 ball bearings (ignore shipping costs between Slovenia and Greece). In addition, for each machine it makes it has a production cost...

  • The trend toward fair value accounting By J Russell Madray, CPA The Debate Critics contend that GAAP is seriously flawed...

    The trend toward fair value accounting By J Russell Madray, CPA The Debate Critics contend that GAAP is seriously flawed. Some in the accounting profession go so far as to pronounce financial statements almost completely irrelevant to the financial analyst community. The fact that the market value of publicly traded firms on the New York Stock Exchange is an average of five times their asset values serves to highlight this deficiency. Many reformers, including FASB chairman Robert Herz, believe that...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT