Test Review

Topics for review for Exam 3 Chapter 10 GAAP rules for tax revenue recognition- 1)Persuasive try of an arrangement exists, 2)Delivery has occurred or services have been rendered, 3)The venders price to the buyer is fixed or discoverable 4)Collectibility is fairly assured. Fraud risks related to revenue recognition ( pinnacle and deferral sales, transport stuffing, lapping, etc.) 1)Side agreements- arrangements used to alter terms & conditions of recoreded sales in order to entice cust. to accept delivery of goods & services 2)Channel Stuffing- (or strife loading) mrkt practice some suppliers use to boost sales by inducing distrib. To buy substantial more inventory than they hind end promptly resell. 3)Related-party proceeding- difficult to identify. Pose substance over harming issues. 4)Bill and Hold gross revenue- sales where cust. agrees to buy goods but trafficker retains physical possession until cust. requests shipment. Such arrangement does n ot trap as a sale bevause delivery has not occurred. Types of proceeding and affected accounts in revenue process Sales ( AR, honorary cash, interlingual rendition of service for cash or character) Receipt of Cash- from cust.

in pay for goods or service Returns Revenue documents (sales order, credit approval, open-order piece of music, bill of lading, invoice, statement, etc.) oOrder- degree of type & qty of prod. or service. ordered oCredit Approval- procedure for take creditworthiness of cust. result documented on credit approval form. oOpen-Order Report- report of all cust orders in which proces sing has not been completed o*Bill of Ladin! g- (Shipping Document)- contains info on qty , type of prod. shipped oSales Invoice- bill customers oStatements- normally mailed periodic. Sales, cash receipt, credit memo. oA/R aged- weekly/monthly synopsis of cust balances. 30 days (31-60, 90 days) oCash expediency Journal- calculate cash, credit a/r, credit other accts as dispute 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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