Great Deal! Get Instant $25 FREE in Account on First Order + 10% Cashback on Every Order Order Now

3. Explaining the Principle of Revenue Recognition </o:p> </o:p> One of your new clients, Sally Armstrong, is the owner of Hair Be Us, a small, successful chain of hair styling shops in...

1 answer below »

3. Explaining the Principle of Revenue Recognition

One of your new clients, Sally Armstrong, is the owner of Hair Be Us, a small, successful chain of hair styling shops in the Los Angeles area. She knows little about accounting, but wants to learn more. She left you a voicemail last Thursday asking about the principle of Revenue Recognition. She does not understand the principle or the idea of when revenue is recognized or realized. Her message asked you what Revenue Recognition means, if there is a difference between recognition and realization, and what this means for her company.

In a short, formal business letter, explain the principle of Revenue Recognition and provide her a brief example that relates to her business. You must use plain, easy-to-understand language that clearly communicates the concept. Be sure to define terms as needed.

Travis Mann

Answered Same DayFeb 27, 2020

Solution

Aarti J answered on Feb 27 2020
74 Votes
27th Fe
uary’ 2018
From: Name
Certified Public Accountant
Address
To: Sally Armstrong
Hair Be US
Los Angeles
Dear Sally Armstrong,
Revenue recognition principle is one of the most important principle which takes into consideration accrual basis of accounting and matching principle. As per the revenue recognition principle, the revenue should be recognized when the services against the same is rendered i
espective whether the cash against the same is received or not. Example:...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here