ACC 110 Lecture Notes - Income Statement, Financial Statement
Document Summary
Revenue is an economic gain earned by an entity from providing goods or services to customers. Dr. cash (asset +) or account receivable (asset +) or unearned revenue (liabilities -) xxx. Income statement account for revenue credited and balance sheet debited when revenue recognized. Any activity by entity to make a good or service available or valuable to customers represents economic gain or revenue. Critical-event approach single point in the earning process where 100% of the revenue in a transaction is recognized common for sale of goods or provision of one-time services. Most often, revenue is recognized in stages, over time, in proportion to some measure of progress on an activity common for continuous services or services provided over an extended period (e. g. long-term development contracts, interest on long-term loans) [ifrs] 5 criteria for identifying the critical for recognizing revenue on the sales of goods: