What is the difference between Revenue and Receipt?
Revenue, in simplest terms, the benefits entity receives on carrying out its main business activities. Though entity can earn income in many ways but not every activity is its main business activity and not every income is revenue. For example, a furniture manufacturer can earn an income on selling drilling machine at a price higher than its […]
What is revenue recognition and accounting treatment for goods sold or sent on sale or return basis?
Before we discuss the recognition principle and accounting treatment for sales under sale or return conditions. First lets have ourselves clear about what is meant by sale or return? Under sale or return, the goods are sent by the supplier to the customer with an understanding that customer does not have to pay for such […]
