[1] Revenue from the Company sales, including its subscription sales, should be recognized when two conditions are met.

[1] Revenue from the Company sales, including its subscription sales, should be recognized when two conditions are met. [2] They should be earned in accordance with generally accepted accounting principals. [3] Since cash receipts preceeds production and delivery of the magazine’s issues, revenue should be recognized on a straight-line bases over the one-year subscription period. [4] If the Company has earned the revenue, it should be recognized when it is realized or realizable. [5] Revenue is realized when cash is received. [6] Revenue is realizable when the Company has a valid receivable. [7] Costs that qualify as “initial direct costs” should also be defered and amortized on a straight-line bases over the one-year subscription period. [8] Initial direct costs includes all costs directly related to securing new subscriptions, such as sales incentive costs, and should be defered as incured and charged to expense in proportion to the revenue recognized. [9] Due care should be taken in capitolizing expenses to avoid a WorldCom-like scandal. [10] In conclusion, the Company should recognize revenue from its magazine sales over the one-year subscription period and defer and amortize initial direct costs in proportion to the revenue recognized.

(a) For what type of audience would the above paragraph be appropriate? Explain.

(b) Has the author appropriately limited its length? Explain.

(c) Has the author written a strong, unifying topic sentence?

(d) What pattern of organization has been used in developing the paragraph?

(e) Which sentence should be considered major supports and, if applicable, minor supports?

(f) What techniques of paragraph development have been used?

(g) Has the author used a “vigorous” writing style to avoid overusing the passive voice or the verb to be?

(h) Are there any unnecessary supports or parts thereof?

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