Answered: Briefly describe the guidelines…

Briefly describe the guidelines provided by GAAP for the recognition of revenue by a franchisor for an initialfranchise fee

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.

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Briefly describe the guidelines provided by GAAP for the recognition of revenue by a franchisor for an initial
franchise fee

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According to U.S. GAAP, when should revenue be recognized?a. When cash is received from the customerb. When the service is performed or the goods have been delivered to the customerc. When the goods or services have been priced and offered for saled. At the stated date in the contract
Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org).Required:Determine the specific citation for accounting for each of the following items: Circumstances indicating when theinstallment method or cost recovery method is appropriate for revenue recognition.
sales tax is collected from customers and paid to the a. board of equalization b. contract documents c. net profit for the year d. current and long term
Explain the function of the receiving department in the revenue cycle.
The FASB has established a Five-Step process to recognize revenue. Which of the following is not one of those steps? A. Ability to identify the contract with the customer. B. Determination thatcollection of the entitled contractual consideration from the customer is probable. C. Properly identify all of the performance obligations within the contract. D. Ability to determine the transaction price. E. Properly identify all of the deliverables and allocate the transaction price to each.
how to bill customer using accrual-basis accounting
Discuss the major principle that describes recording revenues.
None
A can defined as a partial payment remunerated as an advance on the sales person's commission. O a. Draw O b. Purchase O c. Revenue O d. Charge
Explain the revenue recognition process when a performance obligation is satisfied over time according to IFRS 15-Revenue from Contracts with Customers.
Revenue generally should be recognized Select one: when realized. when the performance obligation is satisfied. at the time of cash collection. at the end of production.