Archive | Revenue

Revenue: Meaning, Concept and Activities

In this article we will discuss about Revenue:- 1. Meaning of Revenues 2. Concepts of Revenue 3. Activities. Meaning of Revenues: Revenues are earned from the sale of goods or services done by a business entity to the others. The business entity receives or will receive (in future) cash or something else of value. Generally […]

Comparison among Revenues, Expenses, Gains and Losses

Learn about the comparison among revenues, expenses, gains and losses. 1. Revenues and gains are similar in several ways, but some differences are significant, especially in displaying information about an enterprise’s performance. Revenues and expenses provide different kinds of information from gains and losses, or at least information with a different emphasis. Revenues and expenses […]

Realisation Principle in Revenue Recognition

In this article we will discuss about the realisation principle in revenue recognition. The realisation principle primarily determines the question of revenue recognition. Revenue recognised under the realisation principle is recorded at the amount received or expected to be received. The realisation principle requires that revenue be earned before it is recorded. This requirement usually […]

7 Important Criterion for Revenue Recognition

The following points highlight the seven important criterion for revenue recognition. Some of the criterion are: 1. Revenue Recognised at the Point of Sale 2. Revenue Recognition in Sale of Services 3. Revenue Recognition in Construction Work 4. Revenue Recognition in Instalment Credit Sales 5. Revenue Recognition Using Production Method and Others. Criteria # 1. […]

Measurement of Revenue: 4 Adjustments

The following points highlight the four main adjustments to be made to determine revenue. The adjustments are: 1. Discounts 2. Sales Returns and Allowances 3. Bad Debts 4. Revenue Measurement in Non-Cash Transactions. Adjustment # 1. Discounts: Discounts may be generally of two types—trade discount and cash discount. Trade discounts are used in determining the […]

Effects of Uncertainties on Revenue Recognition

In this article we will discuss about the effects of uncertainties on revenue recognition. Revenue recognition inevitably falls short of its objective because of uncertainty and its effects on business and economic activities and their depiction and measurement. Uncertainty often clouds whether a particular event has occurred or what an event’s effects on assets or […]

shopify traffic stats