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Acc 300 Exam 2 Study Guide

Ch18 Revenue Recognition (when it is realized or realizable, when it is earned) Revenue Recognition at point of sale: (1) Sales with Discounts (2) Sales with Right of Return: Three alternative revenue recognition methods, and recognize revenue only if all of six condition (3) Sales with buybacks (4) Bill and Hold Sales: buyer is not yet ready to take delivery but does take title and accept billing.Revenue is reported at the time title passes if (a) the risks of ownership have passed; (b) the buyer makes a fixed commitment of purchase the goods, requests the transaction be on a buy and hold basis, and sets a fixed delivery date; and (c) goods must be segregated, complete, and ready for shipment. FOB shipping-buyer FOB destination-seller Ch7 Cash and Receivable 1 Cash, cash equivalents, restricted cash and Bank overdrafts: (1). Cash equivalents are short-term, highly liquid investment. Ex.Treasury bills, commercial paper and money market funds. (2). Restricted Cash Ex. Petty cash, payroll and dividend funds. Amount is not material, not segregate from cash; amount is material, segregate.

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