Tag Archives: accrual accounting

Will the cost of the new Forbidden Frontier attraction at Cedar Point reduce income in 2018?

Management of Cedar Point, the amusement park in Sandusky, Ohio, recently announced that it would be closing the Dinosaurs Alive and Witches’ Wheel to make room for a new attraction called “Forbidden Frontier on Adventure Island.” This paragraph is what Cedar Point management released about this upcoming new attraction: “Grab your map and prepare for […]

Continue reading

How will the reservation, purchase agreement, and the delivery of a Model 3 impact Tesla’s financial statements?

Since 2016, Tesla has been accepting reservations for its Model 3 car, which is a mid-size all-electric four-door sedan. The long-range battery Model 3 (310 miles on a single charge) starts at $50,000 while the standard range battery Model 3 (220 miles) starts at $35,000. Production cannot keep up with demand for this model. Tesla […]

Continue reading

Cash basis vs accrual accounting example: A quick video

In introductory accounting, students can struggle to understand the difference between cash basis accounting and accrual basis accounting. I created a simple example that highlights the difference between the two basis of accounting. I created a short video (3:30 min.) of this example. Feel free to share the video with your students – the YouTube link […]

Continue reading

When does SurveyMonkey recognize revenue from its Platinum annual subscription plans?

SurveyMonkey is an online survey company that allows its subscribers to customize and administer surveys.  It recently made the news for raising another $250 million in equity funding (“SurveyMonkey is worth $2 billion after new $250 million fundraising round, Fortune, December 15, 2014.)  (Note: SurveyMonkey is privately held.  The founder says the company will not […]

Continue reading