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Indicate When Each of the Following Businesses Should Recognize Revenue

question 73

Essay

Indicate when each of the following businesses should recognize revenue by writing one or more of the following after it: i) on signing contract, ii) when production is complete, iii) on delivery, iv) gradually as goods and services are provided v) after payment.vi) at a later date
A) Fitness club receives member-ship dues in advance
B) Electronics store offering lay-away plan to low income customers
C) Grocery store
D) Christmas tree farm.It takes on average 7 years to grow a tree.
E) Builder building a town-house development for a real estate developer.
F) Sports equipment store offering $50 gift cards for $40 as a weekend promotion
G) Real estate mogul who sells large tracts of land.H) A diamond mining company

Calculate the effect of a change in costs (fixed and variable) on the break-even point.

Analyze and prepare a CVP income statement, distinguishing it from traditional income statements.

Use CVP analysis to make financial decisions within a nonprofit context.

Understand the characteristics of bonds.

Definitions:

Earnings Per Share

A financial metric that measures the amount of net income earned per share of a company's outstanding stock.

Stockholders' Equity

The remaining interest in a company's assets once liabilities have been subtracted, signifying the ownership stake.

Earnings Per Share

A measure of a company's profitability, calculated by dividing the company's net income by the number of outstanding shares of its common stock.

Market Price

the current value at which an asset or service can be bought or sold in the marketplace.