Identify and write out the revenue recognition principle as explained in the chapter

Question: Refer to Apple’s financial statements in Appendix A to answer the following.

1. Identify and write out the revenue recognition principle as explained in the chapter

Solutions

Expert Solution

Step 1: Definition of revenue

Revenue is the amount that is received from selling goods or selling services.

Step 2: Revenue recognition principle

According to the revenue recognition principle, revenue is only recorded when goods and services are provided to customers, and it is recorded at the expected amount received from the customer

Answer:

Revenue is recognised only when goods are delivered to customers

Sahil Dangi answered 1 year ago

Next > < Previous

Related Solutions

Provide an example of transaction that follows five-step revenue recognition principle. Please identify each revenue recognition...

Provide an example of transaction that follows five-step revenue recognition principle. Please identify each revenue recognition steps.

what is the revenue recognition principle and expense recognition principle? what is the accrual-basis accounting and...

what is the revenue recognition principle and expense recognition principle? what is the accrual-basis accounting and the cash-basis accounting? Adjusting entries- When and why should adjusting entries be prepared? What are the benefits of the adjusted-trial balance?

What would be the effect of removing either the Matching Principle or the Revenue Recognition Principle...

What would be the effect of removing either the Matching Principle or the Revenue Recognition Principle from the process? Use a concrete example of how doing so might affect accounting in a given period.Respond to your classmates’ postings by commenting on what might happen, if expenses are recognized over a period that is longer or shorter than that used for revenues.

What is a Core Revenue Recognition Principle on which revenue can be recognized by sellerWhat is...

What is a Core Revenue Recognition Principle on which revenue can be recognized by sellerWhat is a Core Revenue Recognition Principle on which revenue can be recognized by seller

3) What is the Revenue Recognition Principle? Describe three cases that exemplify this principle. 4) Is...

3) What is the Revenue Recognition Principle? Describe three cases that exemplify this principle. 4) Is unearned revenue classified as an asset, liability or a revenue? Provide a reason for your choice. 5) Write the expanded accounting equation that you would use to study for the information in this chapter. 6) What are T-accounts and why are they used? 7) What is the purpose of an unadjusted trial balance? 8) What is the definition of net profit margin? Provide the...

Among the ten accounting principles (measurement principle, revenue recognition principle, matching principle, full disclosure principle, going...

Among the ten accounting principles (measurement principle, revenue recognition principle, matching principle, full disclosure principle, going concern assumption, monetary unit assumption, time period assumption, business entity assumption, materiality constraint, ans cost benefit constraint), which one of these ten do you believe is the most important and why. (answer in 12 sentences)

CA2-5 (Revenue Recognition Principle) After the presentation of your report on the examination of the financial...

CA2-5 (Revenue Recognition Principle) After the presentation of your report on the examination of the financial statements to the board of directors of Piper Publishing Company, one of the new directors expresses surprise that the income statement assumes that an equal proportion of the revenue is recognized with the publication of every issue of the company’s magazine. She feels that the “crucial event” in the process of earning revenue in the magazine business is the cash sale of the subscription....

The revised revenue recognition accounting standard employs a five-step process to achieve the core principle to...

The revised revenue recognition accounting standard employs a five-step process to achieve the core principle to recognize income upon the transfer of promised goods or services. Use the Internet to research a company that bundles a product and a service. Examine income recognition of the bundled product and service for the company by addressing each step in the five-step process for revenue recognition. Give your opinion on the most critical step for accurately reporting revenue in the five-step process. Provide...

There are five revenue recognition? criteria. 1.Identify the contract with the customer. 2.Identify the performance obligations....

There are five revenue recognition? criteria. 1.Identify the contract with the customer. 2.Identify the performance obligations. 3.Determine the transaction price. 4.Allocate the transaction price to performance obligations. 5.Recognize revenue in accordance with performance. There are some situations.a. a.An apartment owner receives a deposit of? $1200 equal to one? month's rent. b.An insurance company receives annual premiums for fire insurance on June 25 for coverage beginning July 1. c.A city transit authority issues? 200,000 monthly passes at? $80 each for sale...

What are the new reporting and disclosure requirements for revenue recognition? Why is revenue recognition a...

What are the new reporting and disclosure requirements for revenue recognition? Why is revenue recognition a Big Deal?

Subjects