Homework Answers
ANSWER:-
The revenue must be recorded as per the on going process and must not not be deferred since FOB shipping means the sale is recorded as and when the good are shipped. This is against the accounting rule of consistency and revenue recognition since the revenue that is earned in the current period is deferred to the next year with out any valid justification. It will result in incorrect profits for next year and provide inconsistent results.
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The company you work for uses FOB shipping point for all their sales. Inventory is usually...
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upper-income hobbyists. The company’s products are considered very
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back to an earlier time. To reinforce this image company catalogs...
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