COM 270 Chapter Notes - Chapter 4: Income Statement
29 Jan 2017
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Com 270 - chapter 4: revenue recognition & the statement of income: revenue: in ows of economic bene ts from a company"s operating activities. In ows, such as cash, or account receivables. One of the most signi cant amounts reported on the nancial statement. Fair value: price of the product or service that both the buyer & seller agree to at the time of transaction. Trade discount: a negotiated or posted reductions to the selling price. Quantity discount: offered to a customer purchasing large quantities. Important to keep track of in order to evaluate quality gross sales - sale discounts - sales returns & allowances = net sales: contra revenue account: reduces a revenue account on the income statement.
