a) -Revenues are inflows of assets or negotiations of debts or equally. Revenues come from activities from the entity's central operations. -Gains are boosts in net assets and from peripheral or inesperado transactions of the entity. -The difference among gains and revenues hinge to a great extent around the typical actions of a company. For example , when McDonald's sells a burger, it records the selling price as revenue. However , the moment Mc Donald's sells property, it records any excess from the selling price over book worth as a gain. b) -In cash basis accounting, profits are simply identified when cashed is received no matter once and how the skills were performed or merchandise delivered. -In accrual basis accounting, income are identified when they are realized/ realizable or perhaps earned in the case opf: +Persuasive proof of an arrangement exists
+Delivery has happened or companies have been delivered
+The seller's price for the buyer is usually fixed or perhaps determinable
+Collectibles is reasonably assured.
-Revenues are not recognized at the time of sale, but shall be recognized either when the return privilege has considerably expired or when the above conditions are not met. -Accounts are affected by the process of revenue recognition: cash, consideration receivable, revenue, and unearned revenue. c) Lucent acknowledged revenue once persuasive proof of an agreement is out there, delivery has occurred, the fee can be fixed and determinable, and collection of the resulting receivable, including receivables of customers to which Lucent has provided buyers financing, is probable. Intended for sales made from long lasting contacts, mainly those relevant to customized network solutions and network build-outs, Lucent generally uses the proportion of finalization method of accounting. After the occurrence that SECURITIES AND EXCHANGE COMMISSION'S forced Lucent to restate the it is financial effects leading it is stock selling price to fall 8. 5% in 2150, Lucent today records the sales revenue when the buyers buy the equipment,...