ACC 305 Week 2 DQ2 Judgment Case 5-2 Revenue earned by a
business enterprise is recognized for accounting purposes at different times
ACC 305 Week 2 DQ2
Judgment Case 5-2 (page 291)
Judgment Case 5-2 Revenue earned by a business enterprise is recognized for accounting purposes at different times,
Judgment Case 5-2 Revenue recognition
Revenue earned by a business enterprise is recognized for
accounting purposes at different times, according to the circumstances. In some
situations revenue is recognized approximately as it is earned in the economic
sense. In other situations revenue is recognized at point of delivery.
Required:
1. Explain and justify why revenue often is recognized as earned
at point of delivery.2. Explain in what situations it would be useful to recognize revenue as the productive activity takes place
3. At what times, other than those included in (1) and (2) above, may it be appropriate to recognize revenue?
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