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Revenue is the amount of money received by a company during a specific period. This amount includes discounts and deductions for returned merchandise. Revenue is calculated by multiplying the selling price of the goods with the number of amount sold. It is also known as REVs. Revenue Recognition is one of the accounting principles that is included in GAAP (Generally Accepted Accounting Principle). GAAP is the set of rules that compels how accounting information is recorded in the financial statements of a company. Revenue recognition is a concept that determines the specific condition under which revenue is recognized. According to revenue recognition revenue should not be recorded until it is earned. One of its critical components is the speed with which credit sales become cash. Revenue Recognition Assignment Help Online Service provides basis of knowledge and a depth idea about revenue recognition.
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The different types of Revenue Recognition methods explained in Revenue Recognition Assignment Help Online Service are: –
- Cash Sales method: –
Cash Sales Method is a type of revenue recognition method where simple buying and selling transactions are disclosed. The accounting procedures for income realization are basic. The disadvantage of this method is that not all transactions qualify under this method.
- Accrual Method: –
Revenue is recognised under Accrual method when a service is provided or a product is shipped. It refers to an accounting method which is used to estimate company’s performance by recognizing economic events. Cash transactions do not necessarily come under this recognition. Here, the revenue is recorded even if the payment is not received which is in contrast with the Cash sales Method. The Records and Methods is given in details under Revenue Recognition Assignment Help Online.
- Completed Contract Method: –
In completed contract method, the amount of revenue gained by the service provider is established only after the completion of the project. Long-term projects are applicable for this method.
- Percentage of Completion Method: –
Percentage of completion method is preferred over the completed contract method because in this method costs are properly identified to maintain proper monitoring. This method makes sure that the project is still continuing within the projected budget. Construction and engineering companies use this method.
- Appreciation Method: –
The increase in the value of products or goods held by the company for a main trade is referred to as appreciation. Through this method the increment cost and the capitalized costs will all be taken into account as revenue recognition.
- Proportional Performance Method: –
This method can be said as a modified percentage of Completion Method. Here, the costs incurred are allowed for estimation in order to recognise the profits. This method is used by those offering software-related services.
Features of Revenue Recognition Assignment Help Online Service are: –
Clients looking for Revenue Recognition Assignment Help Online Service from us can expect a few pros and traits: –
• Revenue method to be used.
• Notes on all topics related to Revenue.
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