Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 2 - Conceptual Framework for Financial Reporting - Concepts for Analysis - Page 76: CA2-5b

Answer

1. Receipt-of-cash: The payment to the subscription is paid for using cash. 2. End-of-production: The publication takes place every month. One must make a payment to read it. 3. Date of sale approach: Revenues from subscriptions are recorded on the respective dates they are renewed. Besides, the revenues from monthly publications are recorded on the days they are sold, which may not necessarily be one day.

Work Step by Step

1. Receipt-of-cash: The payment to the subscription is paid for using cash. 2. End-of-production: The publication takes place every month. One must make a payment to read it. 3. Date of sale approach: Revenues from subscriptions are recorded on the respective dates they are renewed. Besides, the revenues from monthly publications are recorded on the days they are sold, which may not necessarily be one day.
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