Question
Q:
Complete Judgement Case 5-2 (page 291). Post your results to the discussion board by Day 3. Remember to complete all parts of the problem and report back to the group the results of your analysis. Do not forget to show the necessary steps and explain how you attained that outcome. You must respond to at least two of your classmates' postings to receive full credit.
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Revenue Recognition
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- Posted on Jan 01, 2012 at 5:14:03PM
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Preview: ... rom recommended methods to recognize revenue: (1) specific performance method, (2) completed performance method, (3) proportional performance method, and (4) collection method.
In some non-service firms, revenue can be recognized as the productive activity takes place instead of at a later period (as at point of sale). The most common situation where revenue is recognized as production takes place has been through the application of percentage-of-completion accounting to long-term construction contracts. Under this procedure, revenue is approximated based on degree of contract performance to date and recorded as earned in the period in which the productive activity takes place.
A similar situation is present where, applying the accretion concept, the recognition of revenue takes place when increas ...
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