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1. Explain the factors to be considered in determining when revenue should be recognized in measuring the income of a business enterprise.
2. Explain theACCOUNTING alternatives that Bonanza Trading Stamps, Inc. should consider for the recognition of its revenues and related expenses.
3. For each accounting alternative discussed in (2), giveBALANCE sheet accounts that Bonanza should use and indicate how it should classify each.
A:The factors that need to be considered in determining when revenues should berecognized include the elements of the transaction, specifically the type of product orservice that the…
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