Total dollar payment for goods and services that are credited to an
income statement over a particular time period. Revenue figures will
usually be net of discounts or any payments that are returned to the
customer or client. By subtracting expenses from revenue, a
company's net income can be calculated. In terms of reporting
revenue in a company's financial statements, the question of when
revenue should be considered received (or "recognized") is
sometimes not clear. For example, revenue could be recognized when
the deal is signed, when the money is received, when the services
are provided, or at other times. There are rules specifying when
revenue should be recognized in different situations, and in
general, companies should recognize revenue only when the good or
service is fully transferred over to the customer/client, and when
the amount of revenue to be received can be reliably determined.
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