Intermediate Accounting Module 6 homework

Intermediate Accounting Module 6 homework - Ana Rosique...

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Unformatted text preview: Ana Rosique Intermediate Accounting Module 6 January 29,2012 a. 1. Point of Sale- Point of sale recognizes revenue when transaction is completed, whether is the delivery of manufactured good or the rendition of services as examples. Point of Sale is in accordance with GAAP. 2. Completion of production Completion of production recognizes revenue at the completion of a project but there may be no sale completed. GAAP accepts this revenue recognition method only in cases when no estimation is available or can not be safely assumed. 3. Percentage of completion Percentage of completion is used for long term contracts such as oil drilling, construction projects. The project completion and revenue is estimated based on the term or estimated date of completion. A portion of the revenue is recorded as the financial periods pass. It is accepted under GAAP as long as the estimates are dependable. 4. Installment- Sales method Installment- Sales method is used when there is no reasonably way to estimate collection after the sale.Installment- Sales method is used when there is no reasonably way to estimate collection after the sale....
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Intermediate Accounting Module 6 homework - Ana Rosique...

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