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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