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What would be the impact on a company's current ratio by recording projected revenues for a subsequent period in a current period.?

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تم إضافة السؤال من قبل Antony Kibugi
تاريخ النشر: 2018/04/05
Omar Shalaby CPA
من قبل Omar Shalaby CPA , BANKING ANALYST , CANADIAN WESTERN BANK., EDMONTON/ALBERTA

The question is too vague, it is important to know the following:-You cannot record projected revenues into current period because revenue cannot be recognized as there are no economic benefits that will flow to/from the entity

-Revenues are an income statement item and current ration is current assets/current liabilities, there will be no impact of revenues over the ratio

 

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