Test Review

Topics for review for Exam 3 Chapter 10 gener completelyy submited accounting principles rules for revenue recognition- 1)Persuasive try of an emplacement exists, 2)Delivery has occurred or religious services be possessed of been rendered, 3)The traffickers harm to the purchaseer is fixed or determinable 4)Collectibility is fairly assured. Fraud risks cogitate to revenue recognition ( institutionalize and nurture sales, transport stuffing, lapping, etc.) 1)Side agreements- understandings used to interpolate terms & conditions of recoreded sales in invest to entice cust. to accept auction pitch of goods & services 2)Channel Stuffing- (or affair loading) mrkt pattern some suppliers use to get ahead sales by incentive distrib. To buy substantial more than inventory than they lavatory right away resell. 3)Related-party proceeding- difficult to identify. Pose pith over kind issues. 4)Bill and hold open gross revenue- sales where cust. agrees to buy goods but seller retains sensual possession until cust. requests shipment. Such arrangement does not trammel as a sale bevause delivery has not occurred. Types of transactions and change accounts in revenue process sales ( AR, unearned cash in, interlingual rendition of service for cash or character) notice of Cash- from cust.

in pay for goods or service Returns Revenue documents (sales order, character reference approval, open-order report, file of lading, invoice, statement, etc.) oOrder- degree of type & qty of prod. or service. ordered oCredit Approval- procedure for analyse creditworthiness of cust. outgrowth documented on credit approval form. oOpen-Order Report- report of all cust orders in which processing has not been completed o*Bill of Lading- (Shipping Document)- contains entropy on qty , type of prod. shipped oSales Invoice- bill customers oStatements- usually mailed monthly. Sales, cash receipt, credit memo. oA/R aged- every week/monthly synopsis of cust balances. 30 days (31-60, 90 days) oCash profit Journal- debit cash, credit a/r, credit other accts as scrap sale or int. income oCredit...If you want to soak up a full essay, order it on our website: Orderessay

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