Depending on the company the terms may be...
Revenue, Income, Sales
[Debit] Cash / bank [Credit] Services revenue
If a company is using the cash-basis method of accounting, when is revenue recorded? A) When services are rendered, even though cash may be received at a later date B) When cash is received C) Only when cash is received before the completion of the services D) Only when cash is received during the completion of the services
Single entry records only one aspect of transaction, such as:- - Cash received from sale is recorded in cash register only- - Goods sold on credit are recorded in the individual's account only- - When cash is received from the customer, to whom the something was sold on credit, the receipt may be just recorded in the account of individual onlyDouble entry records both aspects of transaction, such as:- - When good are sold on cash the two aspects of the transaction are - the seller has sold goods and received cash against them. The goods sold are benefit transferred to the purchaser (Credit) whereas the cash received if the benefit against the goods sold (Debit).- - When the goods are sold on credit the benefit given is the same i.e. goods sold but the benefit received is not cash but a right to receive cash from the customer. Therefore, in this case Debit is given to customer's account (account receivable) instead of cash.- When cash is received from the customer the right to receive cash ceases. So, the benefit received is cash and benefit transferred is the right to receive cash. Here cash will be debited and customer will be credited.
That is a service.
The term trade receivable refers to the amounts due to a business following the sale of goods or services to another company. It is a subcategory of Accounts Receivable. Trade receivables are considered a current asset on a company's balance sheet, as they can be readily converted into cash.
[Debit] Cash / bank [Credit] Services revenue
If a company is using the cash-basis method of accounting, when is revenue recorded? A) When services are rendered, even though cash may be received at a later date B) When cash is received C) Only when cash is received before the completion of the services D) Only when cash is received during the completion of the services
Purchase or sale of equipment has direct relation with cash flows if the process is completed with cash that is, if equipment purchased with cash then it will reduce the cash and if equipment is sold in cash then it will increase the cash but if equipment is received or paid for goods or services then it has no direct impact on cash flow.
Single entry records only one aspect of transaction, such as:- - Cash received from sale is recorded in cash register only- - Goods sold on credit are recorded in the individual's account only- - When cash is received from the customer, to whom the something was sold on credit, the receipt may be just recorded in the account of individual onlyDouble entry records both aspects of transaction, such as:- - When good are sold on cash the two aspects of the transaction are - the seller has sold goods and received cash against them. The goods sold are benefit transferred to the purchaser (Credit) whereas the cash received if the benefit against the goods sold (Debit).- - When the goods are sold on credit the benefit given is the same i.e. goods sold but the benefit received is not cash but a right to receive cash from the customer. Therefore, in this case Debit is given to customer's account (account receivable) instead of cash.- When cash is received from the customer the right to receive cash ceases. So, the benefit received is cash and benefit transferred is the right to receive cash. Here cash will be debited and customer will be credited.
That is a service.
The definition of sales realization is the conversion of goods, services, and assets into cash. These things are sold to receive cash or other goods.
REALIZED REVENUE-A revenue transaction where goods and services are exchanged for cash orclaims to cash.
payment for goods received which will be delivered
The term trade receivable refers to the amounts due to a business following the sale of goods or services to another company. It is a subcategory of Accounts Receivable. Trade receivables are considered a current asset on a company's balance sheet, as they can be readily converted into cash.
When service given or goods supplied to customer then reveneu is earned and cash received or not received
A Cash operating Cycle is the average time taken to acquire goods and services and convert them to cash in producing revenues
debit accounts receivablecredit services revenue