In the chart below, identify the revenue recognition method that you feel is most appropriate and also explain why.
$$\begin{array} { | l | c | l | }
\hline \text { Transaction } & \begin{array} { c }
\text { Revenue recognition } \
\text { method }
\end{array} & \text { Why? } \
\hline \text { A. An appliance store sells and delivers a fridge } & & \
\text { with a two-year warranty. } & & \
\hline \text { B. An airplane manufacturer signs a contract to } & & \
\text { supply two planes over four years for Air } \
\text { Canada. } & & \
\hline \text { C. An insurance company issues a one-year } & & \
\text { insurance policy. } & & \
\hline
\end{array}$$

Question

In the chart below, identify the revenue recognition method that you feel is most appropriate and also explain why.
 $$\begin{array} { | l | c | l | } 
\hline \text { Transaction } & \begin{array} { c } 
\text { Revenue recognition } \
\text { method }
\end{array} & \text { Why? } \
\hline \text { A. An appliance store sells and delivers a fridge } & & \
\text { with a two-year warranty. } & & \
\hline \text { B. An airplane manufacturer signs a contract to } & & \
\text { supply two planes over four years for Air } \
\text { Canada. } & & \
\hline \text { C. An insurance company issues a one-year } & & \
\text { insurance policy. } & & \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of In the chart below, identify the revenue recognition method that you feel is most appropriate and also explain why.
 $$\begin{array} { | l | c | l | } 
\hline \text { Transaction } & \begin{array} { c } 
\text { Revenue recognition } \
\text { method }
\end{array} & \text { Why? } \
\hline \text { A. An appliance store sells and delivers a fridge } & & \
\text { with a two-year warranty. } & & \
\hline \text { B. An airplane manufacturer signs a contract to } & & \
\text { supply two planes over four years for Air } \
\text { Canada. } & & \
\hline \text { C. An insurance company issues a one-year } & & \
\text { insurance policy. } & & \
\hline
\end{array}$$

In the Chart Below, Identify the Revenue Recognition Method That