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Unformatted text preview: Received in advance 1 = most certain; 6 = least certain 1-4 are accounting liabilities, 5 and 6 are not generally recognized as liabilities * - If the firm cannot estimate the future warranty cost with reasonable precision, it will not recognize revenue at the time of sale so there is liability ** - If the market price of a purchase commitment for inventory is less than the contract price, the firm recognizes a loss and a liability in the amount of the loss. *** - If an obligation is probable and reasonably estimatible, then a liability is booked. STICKNEY & WEIL FINANCIAL ACCOUNTING TEXT 12 ed....
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This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.
- Fall '08