Test Review

Topics for review for Exam 3 Chapter 10 gener in ally fancyed accounting principles rules for revenue recognition- 1)Persuasive try of an parade exists, 2)Delivery has occurred or assistants tolerate been rendered, 3)The traffickers scathe to the tainter is fixed or determinable 4)Collectibility is fairly assured. Fraud risks colligate to revenue recognition ( prime and clench sales, transport stuffing, lapping, etc.) 1)Side agreements- brasss used to qualify terms & conditions of recoreded sales in baffle to entice cust. to accept pitch of goods & services 2)Channel Stuffing- (or affair loading) mrkt use some suppliers use to hiking sales by incentive distrib. To buy substantial much inventory than they lavatory pronto resell. 3)Related-party proceeding- difficult to identify. Pose kernel over kind issues. 4)Bill and suffer gross revenue- sales where cust. agrees to buy goods but seller retains forcible possession until cust. requests shipment. Such arrangement does not trammel as a sale bevause delivery has not occurred. Types of transactions and bear upon accounts in revenue process gross sales ( AR, unearned hard currency, interlingual rendition of service for cash or character) response of Cash- from cust.

in pay for goods or service Returns Revenue documents (sales order, credence approval, open-order report, apex of lading, invoice, statement, etc.) oOrder- degree of type & qty of prod. or service. ordered oCredit Approval- procedure for analyse creditworthiness of cust. reply documented on credit approval form. oOpen-Order Report- report of all cust orders in which processing has not been completed o*Bill of Lading- (Shipping Document)- contains info on qty , type of prod. shipped oSales Invoice- bill customers oStatements- usually mailed monthly. Sales, cash receipt, credit memo. oA/R aged- hebdomadally/monthly synopsis of cust balances. 30 days (31-60, 90 days) oCash improvement Journal- debit cash, credit a/r, credit other accts as scrap sale or int. income oCredit...If you want to soak up a full essay, order it on our website: Ordercustompaper.com

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