Additionally, the CFO at this company has asked for your guidance in evaluating leases.QQQQQQQQQQQQQQQQQQQQ

Write a 350 word memo on this topic

Additionally, the CFO at this company has asked for your guidance in evaluating leases.

Write a 350 word memo on this topic, specifically on how to determine whether substantially all of the risks and rewards of ownership are transferred in the lease. Address how “substantially all” is defined in the authoritative literature.

Answer Preview………….

The authoritative literature that addresses revenue recognition is the sales of product when the deal materializes listed in paragraph 605-15-25-1. Right of Return. It happens that when customers purchases products from the manufacturers and they end up being not contented with the product due to some defects or other reasons, they can return the products to the manufacturers. This is known as the right of return. Basically, it is the right given by the industry to allow their customers return the products within a certain given period of time (Dalkilic, 2017).The authoritative literature that addresses revenue recognition is the sales of product when the deal materializes listed in paragraph 605-15-25-1. Right of Return. It happens that when customers purchases products from the manufacturers and they end up being not contented with the product due to some defects or other reasons, they can return the products to the manufacturers. This is known as the right of return. Basically, it is the right given by the industry to allow their customers return the products within a certain given period of time (Dalkilic, 2017)……………….

APA 349 words