Ask Question
BusinessBusiness
12 August, 04:21

Norfolk Southern Corporation reports revenue in its income statement when the performance obligation is satisfied instead of when the cash is collected?

+2
Answers (1)
  1. 12 August, 04:37
    0
    It is when performance of obligation is satisfied.

    Explanation:

    According to Accounting principle, revenues are recorded only when it is earned, even when cash is yet to be received.

    This implies that revenues or income should be recognized when the services or products are provided to customers regardless of when the payment takes place.

    When buyer is yet to pay, this will be debited to account receivables while sales account is credited.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Norfolk Southern Corporation reports revenue in its income statement when the performance obligation is satisfied instead of when the cash ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Select an answer which correctly completes the following statements. a. A decrease in real GDP causes a rightward shift of leftward shift of movement along the money demand curve. b.
Answers (1)
Han is a self-employed carpenter and his wife, Christine, works full-time as a grade school teacher. Han paid $525 for carpentry tools and supplies, and Christine paid $3,600 as her share of health insurance premiums (not with pre-tax dollars) for
Answers (1)
Calculate the unemployment rate for Batesburg-Leesville, SC. The population of Batesburg-Leesville, SC is 5,377 with 2,572 people employed and 245 people unemployed.
Answers (1)
Hogan Industries had the following inventory transactions occur during 2017: Units Cost/unit Feb. 1, 2017 Purchase 110 $46 Mar. 14, 2017 Purchase 190 $48 May 1, 2017 Purchase 135 $50 The company sold 312 units at $64 each and has a tax rate of 30%.
Answers (1)
It will cost $6,000 to acquire an ice cream cart. cart sales are expected to be $3,600 a year for three years. after the three years, the cart is expected to be worthless as the expected life of the refrigeration unit is only three years.
Answers (1)
New Questions in Business
Steps that explain exactly what you are going to do to reach your goal are called
Answers (1)
The following information is available for Splish Brothers Corp. for the year ended December 31, 2022.
Answers (1)
Which of the following is true regarding internal customers of an organization? They buy products or services for their own personal use. They receive goods or services from someone within the organization.
No Answers
Most businesses periodically remove bad accounts from their books true or false
Answers (1)
A consulting firm has a predetermined overhead rate of $120 per labor hour. The Smith job required 5 hours to compete. The overhead cost applied to this job is $
Answers (1)
Home » Business » Norfolk Southern Corporation reports revenue in its income statement when the performance obligation is satisfied instead of when the cash is collected?
Sign Up Forgot Password?