Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a. in your own words, define revenues. explain how

a. In your own words, define revenues. Explain how revenues are different from gains. b....

70.2K

Verified Solution

Question

Accounting

a. In your own words, define revenues. Explain how revenues are different from gains.

b. Describe what it means for a business to recognize revenues. What specific accounts and financial statements are affected by the process of revenue recognition? Describe the revenue recognition criteria outline in the FASBs Statement of Concepts No. 5.

c. Refer to the Revenue Recognition discussion in Note 1. In general, when does Apple recognize revenue? Explain Apples four revenue recognition criteria. Do they appear to be aligned with the revenue recognition criteria you described in part b, above?

d. What are multiple-element contracts and why do they pose revenue recognition problems for companies?

e. In general, what incentives do managers have to make self-serving revenue recognition choices?

f. Refer to Apples revenue recognition footnote. In particular, when does the company recognize revenue for the following types of sales?

i. iTunes songs sold online.

ii. Mac-branded accessories such as headphones, power adaptors, and backpacks sold in the Apple stores. What if the accessories are sold online?

iii. iPods sold to a third-party reseller in India

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

For this exercise, you will need to use the package `mosaic` to find numerical and graphical...

Biology
1.2K views

C B 1 point Use the mRNA codon chart below to assign amino acids to...

Physics
1.2K views

Test 13 Code A 6 The magnitude of uniform magnetic field in a small region...

Geometry
1.2K views

In circle H with m GHJ 46 and GH 4 units find area of sector...

Basic Math
1.2K views

Reasoning Tommy earned $14.80 in interest after 4 years on a principal of $100. His...

Basic Math
1.2K views

4.75x = 25. Solve for x.x=10/19x = 25/6x =100/19

Calculus
1.2K views

On a circle of radius 9 feet what angle would subtend an arc of length...

Calculus
1.2K views

ind the general solution given that y e satisfies the complementary equation Use c and...

Algebra
1.2K views

N15 10 30 E FIND THE INTERIOR ANGLES N51 00 00 E N 2 S67...

Accounting
1.2K views

Other Information Allowance for Doubtful Accounts $250 and 318 in 20X8 and 20X7 respectively....

Accounting
1.2K views

Please submit a 100-150 word summary of what you learned about "independence" in the accounting...

Accounting
1.2K views

List the 5 ways lactate is cleared. What are the 3 physiological effects of lactic...