Accounting - Accounting Justin Denman Accounting and...

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Accounting Justin Denman Accounting and Auditing Processes March 4, 2000 writing assignment # 1 Revenue Recognition Policies The purpose of this study is to compare the revenue recognition policies of two companies in the search, detection, navigation, guidance, and industry aeronautical systems. The two companies I have selected are Aerosonic Corporation, and the company Esco Electronics. Esco Electronics Company specializes in the design, manufacture, sales and product support engineering. These products are mainly used in streaming applications filteration / liquid, electromagnetic compatibility testing (EMC), and electric utility communications and control systems. Flow filtration / liquid and EMC test products are supplied to a broad base of customers across the industrial and commercial world. Currently, utilities communication systems are sold primarily to customers in North America. The four main segments of the industry of Scotland are filtration / fluid flow, testing, communications and others. Esco In order to comply with generally accepted accounting principles, management must make estimates of care in the preparation of financial statements. These estimates are expected contract costs and revenues over the life of the contract. These quantities affect the reported amounts of assets and liabilities in the financial statements of the company. Actual results could differ from these figures. Revenue is recognized commercial sales when products are shipped or services. Revenues in the production contracts are recorded when the
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Accounting - Accounting Justin Denman Accounting and...

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