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Does earning revenue affect the accounting equationig in it increases owner's equity?
Wiki User
∙ 15y ago
yes, revenue is a part of the owner's equity
Wiki User
∙ 15y ago
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How does rendering of services for cash affect the accounting equation?
cash assets increase Equity increases as sales revenue increases and net income increases. No effect on Liabilities and Expenses
When is revenue reconized in accurual accounting?
Revenue is recognized when it is incurred in accrual accounting while in cash based accounting revenue is recognized when actual cash is paid
The revenue recognition principle dictates that revenue should be recognized in the accounting records?
The revenue recognition principle dictates that revenue should be recognized in the accounting records when it is earned.
Is revenue the gross increase in equity from a company's earning activities?
Yes, revenue is the gross increase in equity from a company's earning activities.
Describe how an accurral accounting deferent fom cash accounting?
Accrual accounting records an expense/revenue in the period the transaction occurs. Cash accounting recognizes and expense/revenue when cash is exchanged.
How does rendering of services for cash affect the accounting equation?
cash assets increase Equity increases as sales revenue increases and net income increases. No effect on Liabilities and Expenses
When is revenue reconized in accurual accounting?
Revenue is recognized when it is incurred in accrual accounting while in cash based accounting revenue is recognized when actual cash is paid
The revenue recognition principle dictates that revenue should be recognized in the accounting records?
The revenue recognition principle dictates that revenue should be recognized in the accounting records when it is earned.
Is revenue the gross increase in equity from a company's earning activities?
Yes, revenue is the gross increase in equity from a company's earning activities.
Largest single source of the government earning from the tax revenue?
earning tax
Describe how an accurral accounting deferent fom cash accounting?
Accrual accounting records an expense/revenue in the period the transaction occurs. Cash accounting recognizes and expense/revenue when cash is exchanged.
What is an application of accrual accounting?
An application of accrual accounting is the notation of expenses as opposed to revenue earned in the same period. Revenue is only shown when it is realized or expected. In accrual accounting assets minus liabilities equals revenue.
What is the meaning of deferred revenue expenditure?
an deferred revenue is known as accounting
Does an increase in revenue always lead to an increase in equity?
Incresea of revenue increases the equity only if business earn profit but if rising revenues are also backed by rising expenses and in the end if company earning loss then it will cause in decrease in equity.
When is Revenue is recognized?
Business Accounting
the excess of revenue over the expenses incurred in earning the revenue is called capital?
False
Which of the following are in accordance with generally accepted accounting principles?
the revenue recognition principle dictates that revenue should be recognized in the accounting records?
