Buy custom Revenue Recognition for McDonald's Corporation
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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 991 |
Essay's paper body
Due to small transaction amounts between customers and the corporation, credit sales are very uncommon. Because credit sales are low, McDonalds has no future uncollectible accounts to estimate. McDonalds requires minimal financial assets because it is a cash business. Therefore, McDonalds uses the cash basis to record revenues...
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Therefore, McDonalds uses the cash basis to record revenues.
Investors and creditors have concerns about receiving an adequate return on their investments given their degree of risk. Using the cash basis of accounting, McDonald’s provides accurate and reliable revenue figures that assist its investors in making educated guesses regarding the company’s future financial state...
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