Income Statement
Revenue Recognition
Revenue recognition remains one of the most important principles of accrual accounting. The principle holds that reporting of revenue must be during the period in which the revenue generation takes place. Such aids in the determination of the accounting period for which the recording of revenue and expenses must occur. According to the general rules of the revenue recognition principle, financial records ought to indicate the revenues once delivery for the exchange of goods and services is complete. In some cases, the payment of goods or services may occur in the same period of their delivery. In
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