C6 - advanced. When a consumer pays for the ticket should...

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Bryan Redic ACCT Sect 1:00 – 1:50 Chapter 2 C6. The total revenue for CVS and Southwest Airlines in the year 2008 was $87,471.9 and $11,023, respectively. Most often, when a prescription is being filled, the consumer pays for the medication on the spot and is given the medication. This would make recognition for the transaction pretty simple. On the other hand, airline tickets are order days and even weeks in
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Unformatted text preview: advanced. When a consumer pays for the ticket should the transaction be recorded, or should it be recorded once the airline actually earns the money when the consumer has been on their flight? This would make recognition more confusing. The gap between cash received and cash earned is much smaller for CVS, making recognition an easier issue to deal with....
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This note was uploaded on 01/23/2012 for the course BUS 1000 taught by Professor Annerich during the Fall '10 term at Cedarville.

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