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 cash is received immediately from [...]
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 result from an enterprise's on-going [...]
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 causes no problems because the [...]