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 […]
Category: Dictionary
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 […]
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 […]
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 […]