What is Revenue Recognition?

Definition Revenue is only revenue (or profit) when it can calculate, that is, recognized and realized. Other says that, the actual profit that company already earn in present time. Forecasting or prediction isn’t revenue recognition. A company that, for example, functions in the retail industry, buys an inventory. It can predict how much money the […]

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What is a sales return?

Definition A sales return, as the name implies, is something (a product or service) that is sent back to the seller. Or Direct deduction from gross income for any return of product or service (multifactional) is called sales return. The scenario will be reversed in case of credit sales, so in a journal entry, the receivable amount […]

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Net Credit Sales

Definition A credit sale is one in which the company does not immediately receive cash. A customer buys a product or service on credit, that is, he pays for it after a given time period. Companies usually have a very high amount of credit sales if their credit sale policy is not very strict or […]

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Adjusting Entry for Unearned Income

What is Unearned Income? In some cases, when you receive cash (Revenue) in term of advance rent this must include in adjusting entry as an unearned income. This amount list in Liabilities or accrued income in accounting terms. Both types of cash either under list in income or liability, as defined by two main methods. It means […]

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What is Accrued Revenue?

Accrued revenue is the income that has been recognized but not collected for some reason. It means, in literal terms, that a product or service has been delivered to the customer but the billing for the service has not yet been processed. You can also state as, a company CTG promise to pay all amount in […]

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Top Accounting Firms in U.K

Accounting has always been a thing of paramount importance to all businesses and while accounting is important to businesses, not all companies have accountants. Of course, for a successful company, you need competitive accountants and hiring a number of skilled accountants for one company is just one way of doing it. Another way, that has […]

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Type-of-Rules-of-Accounting

Type of Rules of Accounting

In this page, I will discuss some modern concept of accounting worldwide.  Although accounting basic to types isn’t purely different but some technical changes should every student must go through. Before learning Rues of accounting, makes sure you clear concept of Types of accounts in accounting. Accounting Divide into 2 Types Accounting is generally divided […]

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Types-of-Accounts-in-Accounting

Types of Accounts in Accounting

Accounting is a topic as vast as itself. It is a structured way of tracking money and its expenditure. For companies of all sizes, accounting has its use. Variety of Accounts definition according to accounting book but different authors, but main fundamental principles are same. So in this article, we will discuss Types of Accounts […]

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What is a Voucher?

Definition A voucher is basically a piece of paper that is created upon the success of any transaction between a buyer and seller. It is used to authorize a reliable payment. A voucher is most commonly used to record or authorize a payment that is supposed to be made to a supplier upon the delivery […]

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