Question

Pick 5 business

Each of one need:

1. Explain their revenue stream (type)

2. Explain when the revenue would be recognized ("earned") under the accrual method

3.Will there be a different gross and net sales?

4.Name 1 Cogs, if applicable

5.Name 1 variable operation expenses

6.Name 1 fixed operating expenses

Answer 1

Particulars	Business
	1	2	3	4	5
Type of business	Construction Company	Hotel	Electricity Company	Consulting firm	Garment Seller
Revenue stream	Project Revenue	Service Revenue	Recurring Revenue	Service Revenue	Transaction Based Revenue
Accrual of Revenue	Work Completion	Man/days	Per Month	per hour	on sale of car
	Revenue accrued when milestone of work get completed.	Revenue occurred on the basis of occupancy of room	On completion of Month	Providing opinion to client	Billing of Car
Different gross and net sales	Gross sale may reduce due to unsatisfactory work to client.	Trade Discount	Early payment discount	Taxes charged in billing	Sale return
Cost of Goods Sold	Cost of Material like cements, sand, bricks	Consumables like Gas & water.	Not applicable as electricity cannot be stored	Not applicable as service provider	Packing material
Variable Operation expenses	Freight	Food Expenses	Fuel Consumption	Stationery	Commission to agents
Fixed operating expenses	Hire charges of Machinery	Licence fee	Salary of employees	Rent Of premises	Interest on loan