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Unformatted text preview: the critical event, and title legally passes from the seller to the buyer Making and collecting loans and disposing of plant, property and equipment are investing activities Under the completed contract method, revenue, cost, and gross profit are recognized at the time the contract is completed The goods or services are exchanged for cash or claims to cash (receivables), revenues are realized Under the cost recovery method of revenue recognition, profit is recognized when the cash received from the sale of the product is greater than the cost of the product The petty cash account is usually credited when the fund is replenished...
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This note was uploaded on 03/26/2008 for the course ACCT 315 taught by Professor Kratchman during the Fall '08 term at Texas A&M.
- Fall '08