Case Concepts/Topics Flashcards
1
Q
How are guaranteed warranty recorded?
A
When the warranty obligation is fulfilled, then revenue can be recognized. Before that, warranty is recorded as a deferred revenue liability because rewards is not transferred to the customer.
2
Q
Are training costs included in capitalization?
A
Costs to train the employees should not be capitalized, as they are not required to bring the asset to the location and for it to be capable of operating in the manner intended by management.
3
Q
How to calculate the present value of the minimum lease payments amounts?
A
On Excel:
On the Financial Calculator:
