Revenue Recognition for McDonald's Corporation
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Title: Revenue Recognition for McDonald's Corporation

Essay Details:

Subject: Business
Author: Susan B
Date: March 14, 2013
Level:
Grade: A
Length: 4 / 991

Essay text:

The sales they record are by company-operated restaurants. McDonald’s records these sales using a cash basis system. This system means that the accountants record revenues when the company receives cash, and it records expenses when it pays cash. By using a cash basis, McDonald’s does not have to estimate what it will not receive in its sales. McDonald’s “presents sales net of sales tax and other sales-related taxes” (McDonald’s Annual Report, 44). Franchise fees are for the services McDonald’s offers to the franchisees. Franchise fees included on the balance sheet are from the franchisees paying rent and a percentage of their sales...

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