Festi corp. is evaluating if revenue may be recognized for two of their contracts. the customer in contract a has indicated that they are ready to accept the transfer of the products associated with the contract, but delivery has not yet occurred. the customer in contract b has received legal title to the products, but has asked festi to store the products for them until they open the new stores for which the product has been ordered. festi has clearly labeled and set aside the products in the warehouse for the customer in contract b, but delivery has not yet occurred. should revenue be recognized for: contract a contract ba yes nob no yesc no nod yes yes

B. No, Yes

Explanation:

There are no indicators that the customer in Contract A has obtained control of the products; therefore, revenue should not yet be recognized for Contract A. The customer in Contract B has received legal title to the product, thus, the significant risks and rewards of ownership have transferred to the customer in Contract B. Contract B appears to be a bill-and-hold sale because the customer is not able to take delivery until their new stores are ready to receive the inventory and Festi has clearly set aside the product associated with Contract B.

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.