Thursday, November 8, 2012

Revenue Recognition

http://ccba.jsu.edu/accounting/REVENUERECOGNITION.HTML

A. Revenue Recognition Under Generally Accepted Accounting Principles

Under generally accepted accounting principles revenue should not be recognized until it has been earned. For sales of products, revenue is not considered earned until there has been a transfer of ownership to the buyer. The timing of the transfer of ownership often depends upon the shipping terms. For services, revenue is generally not recognized until the service has been performed.

B. Shipping Terms and Transfer of Ownership

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