Chpt 7 Revenue Recognition

Question 1

Sale of goods when all of the following are met

Answer 1

1 - transfer to buyer the significant risk and rewards
2 - no continuing managerial involvement or control
3 - amount of revenue can be measured reliably
4 - probable that economic benefits will flow to the entity
5 - transaction costs can be measured reliably

Question 2

Service when all met

Answer 2

1 - stage of completion can be measured reliably
2- amount of revenue can be measured reliably
3 - probable that economic benefits will flow to the entity
4 - transaction costs can be measured reliably