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Revenue Recognition or Realisation
The resources of business are utilized to earn revenue through sale of goods or rendering of services.The American Accounting Association described revenue as "the monetary expression of the aggregate of products or services transferred through an enterprise to its customers during a period of time" and according to Robert N Anthony "revenue is being considered as earned the date at that it is realized that is the date while goods or services are furnished to the customers in exchange for cash or for other valuable consideration.
Therefore the revenue is considered realized while the sales process is complete and transfer of title or ownership takes place. Therefore it is not essential that cash inflow should take place.
Break-Even Point The measure of products or services organizations must sell for its revenue from sales to equal its cost of production for the same number of units. Hence, se
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A company commissioned a valuation of its land and buildings for inclusion in its financial statements. The valuation document contained the following details:
In the efficient markets, whether it is security, equity or fixed-income markets it is believed that the investors use some type of passive strategy in
explain the concept of working capital.what are the factors which influence the working capital?
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The number of properties sold every month indicates that Thorne Co experiences seasonal trends in its business. There is an sign that property sales are at a low level in winter an
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