You are an accounting major who recently completed your masters degree in accounting and began working in public accounting as of September 1, 2011. Your younger brother currently is enrolled in a principles of accounting course. Your brother calls you at your firm's offices one day to congratulate you on the purchase of your new stereo system for your apartment. In the course of the conversation, your brother tells you that his accounting instructor discussed the installment sales method of recognition in class recently. Since your brother knows that you are paying for the stereo by making monthly payments, your brother (in an attempt to impress with his new-found knowledge) begins to describe the process for accounting under the installment sales method of revenue recognition. Your brother finds it particularly curious that the store that sold you the stereo system will be deferring revenue on the sale until cash is collected.
Required:
How would you respond to your younger brother's comments?
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q59: Grover, Inc., appropriately uses the installment sales
Q60: The completed-contract method (as opposed to the
Q62: CellMate, a cellular phone company, conducts a
Q62: Revenue is measured in terms of the
Q63: Sand Company, a publicly traded company, delivers
Q63: The percentage-of-completion method is used to recognize
Q65: Roberts Company sold inventory to Peterson Incorporated
Q66: The Buford Corporation introduced a new line
Q69: Marvel System Services provides its customers with
Q75: The collection of credit sales is usually
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents