1). When a company sells a product for cash, it generally recognizes the revenue. However, there are situations when it is not always clear when a company should recognize the revenue. 1) How do you handle a car dealership that sells a warranty contract to its customers for $650 that will cover the next 5 years?
2. If you won $1,000,000 in the state lottery and had a choice between receiving $50,000 a year for 20 years or getting a one-time payment of $560,000, which would you take? What factors are important to consider?