Here is the synopsis of our sample research paper on CALTRON AND ACCOUNTING STANDARDS. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 3-page paper is a sample memo dealing with income recognition for a fictitious company called Caltron. Bibliography lists 2 sources.
Page Count:
3 pages (~225 words per page)
File: D0_MTcaltrona.rtf
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Unformatted sample text from the term paper:
To Whom it May Concern: Though Caltron recognizes revenue when computers are shipped, auditors questioned four transactions during the fourth quarter,
wondering about the impact of the transactions on earnings. The difficulty with the four transactions was that the systems in two cases were not shipped specifically within the quarter, yet
the revenue for both systems was still recognized. In another transaction, only part of the sales price was received at time of shipment. The last transaction also represented a partial
payment, but it was to a customer that had a history of returning systems. Still, the down payment was recorded as recognized revenue.
The difficulty with the above sales is that theyre different in nature. Again, though Caltron recognizes revenue when computers are shipped, in the above situations, the full amounts were
not received at the time of shipping (though anticipated revenue was recorded from the sales). The reason for this was the hierarchy
of accounting qualities, at which the top of the hierarchy is decision-makers and characteristics (including understanding or prior customer knowledge) (University of Pretoria, 2007). In other words, the hierarchy of
qualities assumes that accounting is practiced with knowledge of the customer (University of Pretoria, 2007). Along those lines, flexibility is absolutely necessary, along with understanding the FASB rules (University of
Pretoria, 2007). Its this flexibility that Caltrons bookkeepers used in dealing with the four above transactions. The flexibility on the one hand,
allows us to deal with the customers on an individual basis, knowing the particular customers in question. For example, knowing Harvey Industries already returned a system makes us reasonably confident
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