Sweet Cheek

To: Ana From: CWP Accountants Re: Sweet Chick Limited accounting policies This subject area will provide you with CWP recommendations go divulgeing the accounting policies applicable to your business. As actuate by you through bonus allocation the management police squad aim to reduce the tax payable, on the other slide by to satisfy Mr. Naïf to grant you a lend for required start up gives and purchasing the two journey ships you have to tar defecate to maximize your income as these purchases are native for your business. Revenue recognition: Revenue recognition needs context due to misgiving of timing and the amount of revenue enhancement collection, with regard of any revenue recognise, the cost associate with that earning must as well as be accrued for the purpose of matching. There are trinity stages when to recognize revenue; Revenue stern be recognized aggressively at the time of sale of the packages when the 20% of fee is received, at this point revenue is not earned and the cost are not exactly known, there are uncertainty regarding the timing and the amount that SCL will collect from travel agent. If the 20% of package price is treated as non refundable deposit so the level of uncertainty will be less as there is lower chance that people drop out and ask for the refund.

Revenue also can be recognized in two weeks before the trip when the 50% can be recovered from customers, people by paying the 70% are very unlikely to chafe their trip, and the amount of the revenue can be measured more reliably. You have to mete out that there may be adverse weather conditions, take aim of the employees and some other event and circumstances out of your bid before end of the trip which prevent you to provide the promised advantage to the customers, some of these events are unpredictable which you may need to cancel packages and pay for the refund or postpone the trip which yard unreliable revenue measurements. Third option is to recognize revenue at the end of trip when SCL fulfilled its... If you want to get a full essay, order it on our website: Ordercustompaper.com

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