The following points highlight the four main adjustments to be made to determine revenue. The adjustments are: 1. Discounts 2. Sales Returns and Allowances 3. Bad Debts 4. Revenue Measurement in Non-Cash Transactions. Adjustment # 1. Discounts: Discounts may be generally of two types—trade discount and cash discount. Trade discounts are used in determining the invoice prices, i.e., actual selling [...]
In this article we will discuss about the effects of uncertainties on revenue recognition. Revenue recognition inevitably falls short of its objective because of uncertainty and its effects on business and economic activities and their depiction and measurement. Uncertainty often clouds whether a particular event has occurred or what an event's effects on assets or liabilities or both may have [...]
In this article we will discuss about Revenue:- 1. Meaning of Revenues 2. Concepts of Revenue 3. Activities. Meaning of Revenues: Revenues are earned from the sale of goods or services done by a business entity to the others. The business entity receives or will receive (in future) cash or something else of value. Generally cash is received immediately from [...]