Gaap revenue recognition standards are based on broad principles rather than bright-line rules. this creates a certain amount of latitude in determining when revenue is earned. assume a company that normally required acceptance by its customers prior to recording revenue as earned, delivers a product to a customer near the end of the quarter. the company believes customer acceptance is assured but cannot obtain it prior to quarter-end. recording the revenue would assure "making its numbers" for the quarter. although formal acceptance is not obtained, the salesperson records the sale, fully intending to obtain written acceptance as soon as possible. a. what are the revenue recognition requirements in this case? b. what are the ethical issues relating to this sale? c. assume you are on the board of directors of this company. what safeguards can you put in place to ensure the company’s revenue recognition policy is followed?

The following accounts appeared in recent financial statements of delta air lines. identify each account as either a balance sheet account or an income statement account. for each balance sheet account, identify it as an asset, a liability, or stockholders' equity. for each income statement account, identify it as a revenue or an expense. item financial statement type of account accounts payable balance sheet advanced payments for equipment balance sheet air traffic liability balance sheet aircraft fuel (expense) income statement aircraft maintenance (expense) income statement aircraft rent (expense) income statement cargo revenue income statement cash balance sheet contract carrier arrangements (expense) income statement flight equipment balance sheet frequent flyer (obligations) balance sheet fuel inventory balance sheet landing fees (expense) income statement parts and supplies inventories balance sheet passenger commissions (expense) income statement passenger revenue income statement prepaid expenses income statement taxes payable balance sheet

cranium, inc., purchases term papers from an overseas supplier under a continuous review system. the average demand for a popular mode is 300 units a day with a standard deviation of 30 units a day. it costs $60 to process each order and there is a five−day lead−time. the holding cost for a paper is $0.25 per year and the company policy is to maintain a 98% service level. cranium operates 200 days per year.what is the reorder point r to satisfy a 98% cycleminus−service level? a. greater than 1,700 unitsb. greater than 1,600 units but less than or equal to 1,700 unitsc. greater than 1,500 units but less than or equal to 1,600 unitsd. less than or equal to 1,500 units

The discussion of the standards for selection of peanuts that will be used in m& ms and the placement of the m& m logo on the candies speaks to which building block of a sustainable competitive advantage: