Test Review

Topics for review for Exam 3 Chapter 10 GAAP rules for gross recognition- 1)Persuasive try of an arrangement exists, 2)Delivery has occurred or services have been rendered, 3)The marketers price to the buyer is fixed or ascertainable 4)Collectibility is fairly assured. Fraud risks related to revenue recognition ( appoint and take a leak sales, transport stuffing, lapping, etc.) 1)Side agreements- arrangements used to alter terms & conditions of recoreded sales in order to entice cust. to accept delivery of goods & services 2)Channel Stuffing- (or inter-group communication loading) mrkt practice some suppliers use to boost sales by inducing distrib. To buy substantial more inventory than they tail promptly resell. 3)Related-party proceeding- difficult to identify. Pose substance over miscellany issues. 4)Bill and Hold gross revenue- sales where cust. agrees to buy goods but marketer retains physical possession until cust. requests shipment. Such arra ngement does not spring as a sale bevause delivery has not occurred. Types of minutes and affected accounts in revenue process Sales ( AR, honorary cash, interlingual rendition of service for cash or character) Receipt of Cash- from cust.

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

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