Explain in what situations it would be appropriate to recognize revenue over time

Q: Under the modified accrual basis of accounting, expenditures generally are not recognized until: a.…

A: As per the Accrual concept, expenditures are recorded in the books of accounts when they are…

Q: Match the statements below with the accounting assumption, characteristic, or principle to which the…

A: Introduction: Accounting: Accounting is an art of recording , classifying , summarising and…

Q: Do you agree or disagree? Why?

A: This question could generate some debate as in human resource (HR), employees of the entity can be…

Q: (Recognition of Revenue—Theory) Revenue is recognized for accounting purposes when a performance…

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: What are the two general criteria that must be satisfied before a company can recognize revenue?

A: Definition:   Revenue recognition principle: Revenue recognition principle emphasizes, that the…

Q: Revenue is recognized based on a five-step process that is applied to a company's revenue…

A: Definition:   Revenue recognition: GAAP (generally accepted accounting principle) states that under…

Q: A system of accounting in which revenues are recognised when earned and expenses are recognised when…

A: Accrual system of accounting is the one in which expenses are recorded as and when they are incurred…

Q: The revenue recognition principle and the expense recognition principle require that the company…

A: Revenue Recognition It is important for the business entity to recognize the revenue and its…

Q: Explain why the income statement can also be called a “profit-and-loss statement.” What exactly does…

A: Income statement is a part of financial statements which is prepared at the end of accounting…

Q: Accountants use reserve accounts for various reasons, for each of the cases below describe a…

A: Uses of reserves

Q: Which one of these statements about the accrual-basis of accounting is false? This basis is in…

A: Cash basis of accounting recognize the expenses or revenues when they are paid or received. Accrual…

Q: According to accruals rules, when a service is performed, the revenue should be recognized…

A: Solution- Accrual accounting is an accounting method whereby revenue and expenses are recorded in…

Q: The following questions deal with materiality. Choose the best response. Which one of the following…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: If cash is received from a customer in the current period, but the related performance obligation is…

A: Accounting principles are general guidelines that are used by the accountant in preparing the…

Q: Explain why the income statement can also be called a “profit-and-loss statement.” What exactly does…

A: Net income is generated after analyzing revenues and expenses of the organization.

Q: Which statement is true concerning the accrual basis of accounting? Revenues are recognized when…

A: There are two accounting methods which are currently used by the business. One is cash basis of…

Q: Give an example of how this chosen principle affect the financial reporting process. You can explain…

A: The principle of consistency suggests that you need to adhere to and follow this principle…

Q: What criteria determine whether a company can recognize revenue over time?

A: Revenue is recognized over time if one of the following conditions is met: The customer…

Q: If the statement of financial position error is discovered in the year of error, what action is to…

A: Errors mean the data entered in the financial system is not as per accounting standard. There has…

Q: Which of the following statements is correct? Options: • The net income would still be the same…

A: The accrual basis of accounting is the method under which the income earned and expenses incurred is…

Q: With respect to the concept of materiality, which of the following statements is correct?a.…

A: Definition: Materiality: Materiality is the event or amount that influences financial statements on…

Q: In the process of applying the entity's accounting policies, management makes various judgments,'…

A: Solution Note : As per the Q&A guideline we are required to answer the first question only .…

Q: Identify the accounting assumption, accounting principle, or reporting constraint that mos…

A: Accounting principles are those rules, regulations and guidelines which are used by the accountants…

Q: When preparing financial statement, accountants or auditors will determine an amount which is not…

A: It is practically not possible for an auditor to audit all the transactions in an accounting system.…

Q: The framework for the Preparation and Presentation of Financial Statements includes an underlying…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: Revenue is recognized for accounting purposes when a performance obligation is satisfied. In some…

A: Revenues are the amounts received by a seller on selling goods to the buyer or performing the…

Q: Match the statements below with the accounting assumption, characteristic, or principle to which the…

A: sentences which are matched with accounting assumption, characteristic, or principle to which the…

Q: accruals

A: Under Accrual concept, revenue is recognized when it is earned and expense is recognized when it is…

Q: Which situation here might indicate a company has a low quality of earnings? The same accounting…

A: Quality of earnings represents the earnings of the company in proportion to the operating activities…

Q: Revenue is recognized for accounting purposes when a performance obligation is satisfied. In some…

A: The total amount of income generated by the sale of goods or services connected to the company's…

Q: Which statement is incorrect? A. Revenues are income that arises from the ordinary course of…

A: Revenues can be defined as a source of income that is generated from the main business activity or…

Q: Which statement is incorrect? a. Revenues are income that arises from the ordinary course of…

A: The flow of income that is generated by the regular sale of goods and services is regarded as…

Q: The FASB, GASB, and FASAB all focus their standards on both internal and external financial…

A: FASB, GASB, and FASAB are the boards established by government in order to improve accounting and…

Q: Which of the following is a valid assumption from an accounting perspective? O A company that has…

A: Accounting Principles: The principles or procedures that are required to prepare and report the…

Q: An asset created by a payment for economic benefits that does not expire until some later time is…

A: Lets start with the basic understanding. Prepaid expense is expense which is paid currently but…

Q: The accounting concept that supports reporting revenues in the period in which they are earned is…

A: Explanation: 1. Revenue recognition concept: As per the revenue recognition concept, revenues are…

Q: Which of the following should be treated as a change in accounting policy?  A change is made in the…

A: General accepted accounting principles means those set of standards which is followed while…

Q: Which of the following is not a criterion to recognize revenue under GAAP?A. The earnings process…

A: GAAP is the generally accepted accounting principles that are used by the accountants for the…

Q: Which of the following is true regarding unearned revenue? Assets are increased when unearned…

A: The revenue or income which is received even before the providence of services or selling of goods…

Q: Which sentence is incorrect? Select one: a. According to the GAAP in Accrual-Basis Accounting,…

A: As per cash basis of accounting, we should record the transaction only when corresponding cash is…