Class Notes (1,015,210)
CA (583,801)
WLU (20,751)
BU (3,836)
BU127 (131)
Lecture 6

BU127 Lecture Notes - Lecture 6: Direct Deposit, Financial Statement, ChequePremium

17 pages60 viewsFall 2018

Department
Business
Course Code
BU127
Professor
James Moore
Lecture
6

This preview shows pages 1-3. to view the full 17 pages of the document.
Chapter 6
*** Practice Midterm Problems AP 2-3 AP 3-5 P 4-1 P 4-2
227-229
Reporting and Interpreting Sales Revenue, Receivables, and Cash
Revenue Principle *** do not record illegitimate revenue (overstate)
Revenues must be recorded when earned:
1. Goods or services have been transferred/delivered 2. The Entity retains
neither continuing managerial involvement nor effective control 3. The
amount of revenue can be measured reliably 4.
It is probably that economic benefits will flow to the entity
a. Probable you will be paid 5. The costs can be reliably measured
The Point At Which Title Changes Hands Is Determined By The
Shipping Terms In The Sale Contract
1.
When goods are shipped Free On Board shipping point, title changes hands at
shipment, and the bu pays for shipping - Revenues are normally recognized at
shipment 2.
When they are shipped Free On Board destination point, title changes hands
on delivery, and the se pays for shipping - Revenues are normally recognized
at delivery Methods To Motivate Customers - affect the way we compute net
sales revenue
1. Allow customers to use credit cards to pay for purchases 2. Providing
business customers direct credit and discounts for early payment 3. Allowing
return from all customer under specific circumstances Seller Accepts Credit
Card Payments Because...
1. Increasing customer traffic at its stores 2. Avoiding the cost of providing
You're Reading a Preview

Unlock to view full version

Subscribers Only

Only half of the first page are available for preview. Some parts have been intentionally blurred.

Subscribers Only
credit directly to customers, including for record keeping and bad de 4 5 Wh
You're Reading a Preview

Unlock to view full version

Subscribers Only

Only half of the first page are available for preview. Some parts have been intentionally blurred.

Subscribers Only
control
In The Sale Contract s at shipment, and the buyer normally
ds on delivery, and the seller normally
cord keeping and bad debts
y a feww for the service i
You're Reading a Preview

Unlock to view full version

Subscribers Only

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.