Question

1- Exchange of goods and services?

2- telcommunication company selling talk time through scratch cards? detaild explination at least 5 lines + the example

3- magazine subscription? detaild explination at least 5 lines + the example

4- goods sold under " Sale or Return "? detaild explination at least 5 lines + the example

5- revenue recognition for MEDIA COMPANY when the advertisment are aired even if the payment is not recevied or reveived in advance? detaild explination at least 5 lines + the example

Answer 1

exchange of goods and services takes place due to money... without money no exchange can takes place... we can participate in market as a customer just because we have koney in our pocket. by giving money we can get what we want to have.

2. telecommunication company sells talk time through scratch cards. no revenue will generate by selling scratch cards but it does when subscribers use it and makes call from it means when they consume it.

3.a monthly magazine recieves 1200 subscriptions of $ 240 to be paid at the beginning of year. each month it recognise revenue worth 24000( 240÷12)×1200)

4. when goods sold and customer pay for that commodity and keep thay with them surely the goods are considered as sold.

and when goods are sold on return basis means let say x is coming on garments shop and saw the variety of jeans from which he selected two and said to shopkeeper that he is going at home with both the jeans but will select only if he love them after wearing then this sale is on return basis as the shopkeeper himself not sure about the goods will surely be sold or be return.