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Financial Terms | |
Revenue Recognition |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
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Definition of Revenue RecognitionRevenue RecognitionThe act of recording revenue in the financial statements. revenue should
Related Terms:Matching PrincipleAn accounting principle that ties expense recognition to revenue recognition, Side LetterA separate agreement that is used to clarify or modify the terms of a sales agreement. Fictitious Revenuerevenue recognized on a nonexistent sale or service transaction. incremental revenuethe revenue resulting from an additional contemplated sale Industrial revenue bond (IRB)Bond issued by local government agencies on behalf of corporations. Internal Revenue CodeRefers to all federal tax laws as a group. Internal Revenue ServiceA federal agency empowered by Congress to interpret and enforce tax-related laws. ![]() NET SALES (revenue)The amount sold after customers’ returns, sales discounts, and other allowances are taken away from Premature Revenuerevenue recognized for a confirmed sale or service transaction in a period Realizable Revenue A revenue transaction where assets received in exchange for goods andservices are readily convertible into known amounts of cash or claims to cash. Realized RevenueA revenue transaction where goods and services are exchanged for cash or RecognitionThe act of verifying the existence of a business transaction by recording it RevenueIncome earned from the sale of goods and services. RevenueAmounts earned by the company from the sale of merchandise or services; often used interchangeably with the term sales. RevenueAn inflow of cash, accounts receivable, or barter from a customer in exchange Revenue bondA bond issued by a municipality to finance either a project or an enterprise where the issuer ![]() revenue centera responsibility center for which a manager is accountable only for the generation of revenues and has no control over setting selling prices, or budgeting or incurring costs revenue-driven expensesOperating expenses that vary in proportion to Revenue fundA fund accounting for all revenues from an enterprise financed by a municipal revenue bond. Sales Revenue Revenue recognized from the sales of products as opposed to the provision ofservices. Service Revenuerevenue recognized from the provision of services as opposed to the sale of Total revenueTotal sales and other revenue for the period shown. Known as "turnover" in the UK. Unearned revenueMoney that has been paid by customers for work yet to be done or goods yet to be provided. Unearned revenueA payment from a customer that cannot yet be recognized as earned Matching conceptThe accounting principle that requires the recognition of all costs that are associated with Matching principleThe process of linking recognized revenue to any associated Real Actions (Earnings) ManagementInvolves operational steps and not simply acceleration ![]() Temporary DifferenceA difference between pretax book income and taxable income that Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |