Asset and liability recognition and measurement. After winning "America's Next Top Model" in 2006, Danielle Evans signed a contract with Ford Models, was named a spokes model for CoverGirl, and signed a contract for a photo spread in Elle magazine. Although Ford did not disclose the details of the contract, typical terms would provide for payments of $500,000 for each of the next three years. Assume that the present value of these payments is $1.2 million. At the time that Danielle signs the contract, Ford Models also provides her with a BMW M3 convertible sports car, valued at $70,000. How should Ford Models treat this contract at the time of signing?© BrainMass Inc. brainmass.com October 25, 2018, 9:39 am ad1c9bdddf
Ford Models should treat the contract as a liability for accounting purposes. A liability is a current obligation because of a past event. In this ...
An examination of a contract for a super model being either an asset or a liability recognition.
Formatted MS Word file containing information on the definition of revenue, revenue recognition and revenue measrement
1). In an accrual accounting system, revenues are recognized as goods are delivered or as services are rendered. (True/False).
2). Give a brief definition of revenue.
3). How are revenues measured? [Not asking for currency here]
4). List any three types of transactions normally processed by the revenue process.View Full Posting Details