Economics of a transaction
The following are independent situations that require professional judgement for determining when to recognize revenue from the transactions.
1. Volkswagen sells all its vehicles with the promise that any service required in the first year of ownership will be free of charge.
2. Walmart sells you a new wardrobe online. The wardrobe is shipped and arrives in November, and you charge it to your Walmart credit card. In December, you receive your Walmart credit card statement and pay the amount due.
3. Norwegian Cruise lines sells you a 10-day Mediterranean cruise. The cost includes your transportation (of course), room and board, and meals and entertainment on the ship. Shore excursions are an additional cost.
4. You go back to Walmart and buy some hangers and socks to go in your new wardrobe. You pay with cash.
5. Students pre-register for online classes at Royal Roads University year round, one month in advance of their course start-date.
6. In February, Splashes sells dishwashers with 3 year extended warranties. The dishwashers are delivered in April, and payment is due upon delivery. Warranty plans are normally sold separately.
Instructions
For each scenario, identify what is being "sold": goods, services, or a combination.

Question

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The Answer of Economics of a transaction
The following are independent situations that require professional judgement for determining when to recognize revenue from the transactions.
1. Volkswagen sells all its vehicles with the promise that any service required in the first year of ownership will be free of charge.
2. Walmart sells you a new wardrobe online. The wardrobe is shipped and arrives in November, and you charge it to your Walmart credit card. In December, you receive your Walmart credit card statement and pay the amount due.
3. Norwegian Cruise lines sells you a 10-day Mediterranean cruise. The cost includes your transportation (of course), room and board, and meals and entertainment on the ship. Shore excursions are an additional cost.
4. You go back to Walmart and buy some hangers and socks to go in your new wardrobe. You pay with cash.
5. Students pre-register for online classes at Royal Roads University year round, one month in advance of their course start-date.
6. In February, Splashes sells dishwashers with 3 year extended warranties. The dishwashers are delivered in April, and payment is due upon delivery. Warranty plans are normally sold separately.
Instructions
For each scenario, identify what is being "sold": goods, services, or a combination.

Economics of a Transaction