Good accounting

Justin Denman Accounting and Auditing Processes March 4, 2000 Writing Assignment #1 receipts Recognition Policies The purpose of this paper is to compargon the revenue recognition policies of 2 companies in the search, detection, navigation, guidance, and aeronautical systems industry. The 2 companies I have selected be Aerosonic Corporation, and Esco Electronics Company. Esco Electronics Company is engaged in the design, manufacture, deal and support of engineered products. These products ar used principally in filteration/ eloquent feed in applications, electromagnetic compatibility (EMC) testing, and electric utility communication theory and suss out systems. The filtration/fluid flow and EMC testing products be supplied to a encompassing base of industrial and commercial customers worldwide. At the present time, electric utility communications systems are marketed primarily to customers in sexual union America. The iv primary industry segments of Esco are Filtrat ion/Fluid Flow, Test, Communications, and other. In regurgitate for Esco to conform with generally accepted accounting principles, management must(prenominal) make careful estimates in preparing the financial statements. These estimates are for give birth contract make ups and revenues earned during the life of the contract. These amounts affect the survey amounts of assets and liabilities on the companys financial statements. Actual results could differ from these numbers. Revenues are agnise on commercial sales when products are shipped or when go are performed. Revenue on production contracts are stay fresh when specific contract terms are fulfilled. These amounts are immovable either by the units of production or delivery orders. Revenues from bell reimbursement contracts are recorded as costs are incurred, summation fees earned. Revenue under long-term contracts in which the previous two systems are inappropriate, the percentage-of-completion method is used. Revenue under engineering contracts are gene! rally recognized as certain milestones are attained. The percentage-of-completion method recognizes a portion of the estimated gross profit for each apprehension based on progress to date. Progress to... If you want to rapscallion off a full essay, order it on our website: OrderCustomPaper.com

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