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Identify When Each of the Following Companies Should Recognize Revenue

Question 31

Short Answer

Identify when each of the following companies should recognize revenue.
a. Valero Energy - integrated petroleum company that sells crude oil, natural gas and petroleum and chemical products under short-term agreements at prevailing market prices
b. Boeing - airplane manufacturer whose revenue is derived largely from long-term fixed-price contracts with airlines
c. Wells Fargo - large commercial bank that earns interest on loans
d. Ford Motor Company - manufactures and retails automobiles, provides financing for dealers and customers

Correct Answer:

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a. Valero: revenues are recognized when ...

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