A company should only apply the revenue recognition standard to contracts that meet all of the following criteria except
A) the contract has commercial substance.
B) collectability of consideration is probable.
C) each party's rights regarding goods and services to be transferred are identified.
D) the transaction price is fixed and determinable.
D
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A clothing chain is considering two different locations for a new retail outlet. The organization has identified the four factors listed in the following table as the basis for evaluation, and it has assigned weights as shown
The manager has rated each location on each factor, on a 100-point basis (higher scores are better), as shown under the respective columns for Barclay and Chester. a. Calculate the composite score for each alternative location. b. Which site should be chosen? c. Are you concerned about the sensitivity and subjectivity of this solution? Comment. Factor Factor Description Weight Barclay Chester 1 Average community income .40 75 70 2 Community growth potential .25 60 80 3 Availability of public transportation .15 45 90 4 Labor cost .20 80 60
The term that considers having money readily available when you need it is the concept of
A) flexibility. B) liquidity. C) equity. D) solvency. E) none of the above.