0
Should Revenues earned should be reported on the income statement regardless of cash being received or not?
Wiki User
∙ 13y ago
Earned Revenues are not cash. Unless your using the cash basis (which isn't Generally Accepted Accounting Principles). You recognize revenue when it is realized, realizable, or earned. So if the company realized revenue through a sale, depending on when the title transferred to the buyer (FOB shipping point or FOB destination), the selling company would record the revenue.
So to answer your question: Yes, you record Revenue on the Income Statement regardless if you received cash, as long of the title of ownership transferred for that particular product.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
How are the revenues and expenses reported on the income statement under the cash basis of accounting?
They are reported in the period in which cash is received or paid
How are revenues and expenses reported on the income statement under the accrual basis of accounting?
Revenues are reported on the income statement in the period in which they are earned.
By matching revenues and expenses in the same period in which they incur?
By matching revenues and expenses in the same period in which they incur, net income or loss will be properly reported on the income statement.
Cash flows from interest received are reported in the statement of cash flows as part of?
Operating activities
When are revenues reported?
Under the accrual basis of accounting, revenues are reported in the accounting period when the services or goods have been completed. This is answer to question 3 on the Accounting Basics quiz.
Where is i reported in the financial statements?
Need more clarification: i = interest? (if expense: shown in income statement, under expenses. if revenue: shown in income statement, under revenues) i = investment? (is an asset, showin in the asset section of the balance sheet) i = income? ( shown in the income statement)
What type of revenue is reported in the other income section of the multiple step income statement?
unearned service revenue is on the balance sheet not the income statement so the answer is nowhere. service revenue is on the income statement under revenues. unearned service revenue is on the balance sheet not the income statement so the answer is nowhere. service revenue is on the income statement under revenues Looking after a customer, particularly a customer who places allot of business with you so that you keep and grow that business and the relationship you have with the customer (to stop them going
Where does accounts receivable go on a multi step income statement?
Accounts receivables would be included in the balance sheet. The income statement reports revenues and expenses. Accounts receivables is an asset account and all the asset, liablities and equity accounts are reported on the balance sheet.
What are prepaid expenses and prepaid revenues how are they reported on the balance sheet?
Prepaid Expenses:These are expenses for which company has paid in advance but the benefits has not yet received that's why it is an asset of company and shown under current assets in balance sheetPrepaid Revenues or unearned revenues:These are revenues for which company has already received the payment from clients but services or products has not yet supplied so it is a liability of company and shown under current liability section of balance sheet.
What is the most recently reported revenues of Disney stores?
Will I thank that it is good from 1,300 people
Show the treatment of bad debts in financial accounts?
Treatments of bad debts in financial accounts:-A. Revenues should be reported net of discounts and allowances with the discount amount parenthetically disclosed on the face of the statement or in the notes to the financial statements. Alternatively, revenues may be reported gross with the related discounts and allowances reported directly beneath the revenueamount.B. Provision must be made for bad debt estimates each year. Tuition and fees should be reported net of allowances and discounts. As such, increases in allowances for bad debts are recorded as a reduction in revenues rather than anexpense.C. With regard to the presentation of the provision for bad debt estimates taken as a reduction of tuition and fee revenue, this should be deducted from the gross tuition and fee line item and should not be separately displayed on the face of the statement. This treatment is different than scholarship allowances which are required to be disclosed either on the face or in the notes to the financial statements.
What are the revenues for North American Coal Corp?
The North American Coal Corporation operates as a subsidiary of NACCO, a diversified conglomerate that reported 2002 revenues of $2.5 billion.
