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Revenue Recognition

Revenue recognition

Company X sells its products to dealers who sell it to customers .Dealers allow up to 90 days to pay. These terms allow dealers to hold large inventory. By the end of the year, Company X needs to increase its current ratio and decrease its debt-to-equity ratio . If Company x ship extra inventory to dealers, it will increase sale

Gym membership revenue recognition

If health club sells lifetime memberships for 5000 each that is not refundable, the owners would want the revenue to be recognized immediately. Is there an economic incentive to defer the membership revenue in accordance with SAB 101?