Case 09-1, Velocity Cellular

 Essay in Case 09-1, Velocity Mobile

MEMORANDUM

To: Dr . John M. Morris, Office of Accounting

From: Group # five (Amanda Picht, Qinxi Lover, Mengnan Zhang)

Date: Apr 10, 2012

Subject: Acctg 642: Circumstance 09-1, Speed Cellular

Statement of Facts

Velocity Cell Services is a company that offers wireless services and products based on a global System for Mobile Marketing and sales communications (GSM) regular. Under the GSM standard, an activation card is necessary for every subscriber. The corporation is advertising Power Starterpack, a prepaid phone service plan to existing wireless subscribers. Every subscriber of the plan will receive a new service card and a non-refundable prepaid fee of one-hundred dollar. The $200 prepaid coupon includes 50 dollars worth of minutes within 360 days and nights and a brand new activation greeting card. Consumers have got additional benefits such as Wireless, additional memory space, and international call capabilities. Consumers may also buy the account activation card and extra functionalities individually.

Identification of Questions & Alternatives

The following questions and alternatives have already been identified according to disclosure of each of the expected insurance recoveries: 1 . How should Velocity Cellular identify revenue pertaining to the Power Starterpack? Should the deliverable items be recognized individually or being a single item on the monetary statements? 2 . How will need to fees become allocated about financial assertions?

Conclusions and Authoritative Reasoning

1 . Speed Cellular will need to recognize earnings for the activation greeting card and the cellphone service (airtime) separately. A. ASC 605-25-05-2 describes conditions under which multiple deliverables may come up, multiple products may be delivered, performance may possibly occur by different occasions or over several periods of time, plus the customer's obligations for these gifts may be fixed, variable, or possibly a combination of set and adjustable. B. ASC 605-25-25-5 claims that in an...


Related

Essay about Effective Advancements: Communication Abilities and failings

Effective Improvements: Communication Strengths and Weaknesses Communication is actually a necessity to human development. It commences biologically, just before we are created, continuing the others of our days and…...

Essay about Research Pitch On Financing Small And Moderate Scale Organization In Nigeria

п»їCONTENT OF PROPOSAL Study title Qualifications OF Pitch Question and Objective Techniques of analysis Opportunity. And limitation Plan of study Recommendations…...

Physics Pendulum Lab Statement Essay

Pendulum Raiyan Hassan SPH3U September 20, 2011 Introduction A pendulum is a unit which includes a mass attached with a string from a frictionless…...

Lord from the Flies and Human Nature Essay

Good and evil. These are generally two terms that everybody offers heard. One question that can arise coming from these two phrases is whether human beings are essentially…...

Organelles and Functions Article

Plant Cellular Organelles Information OrganelleDescription NucleusThe nucleus is made up of all of the genetic make-up in the cell and it is the control center with the cell NucleolusThe…...

Clark Sink Company Dissertation

Benedictine University MBA 683 Job Management 2013 Circumstance analysis Clark Water filters Company Yilei Zhu Clark Sink Company…...