Sample Essay

Advanced Micro Devices generates revenues by selling products to distributors and manufactures and the revenue recognition policies applied by the company as listed here.

  1. Revenues on goods sold without return privileges are recognized when the company ships these products to distributors or customers.
  2. Revenues are recognized on sales which have fixed prices.
  3. Revenues on products sold to buyers for purpose of resale with return privileges are deferred up to the time when these products are resold.
  4. Revenues are recognized when delivery of products is confirmed and the company is certain that revenues will eventually be collected (Advanced Micro Devices, 2008).

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