Companies using accrual accounting method need to adhere to revenue recognition principles proposed by Generally Accepted Accounting Principles (GAAP). The method states that companies may recognize ...

Many investors get intimidated by accounting concepts, but it's important to understand how a company brings in revenue, and how much of that money makes it to the bottom line in the form of profit.

Unearned revenue is the same thing as deferred revenue. In accounting, unearned revenue is a liability. It is a liability because even though a company has received payment from the customer, the ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Chip Stapleton is a Series 7 and Series 66 ...

Another major issue in revenue accounting is when to recognize or record the revenue. A common practice is to record the revenue when we receive payment (cash) from the customer. This is referred to ...

There are two basic methods of accounting that businesses use to track and report revenues: the cash basis and the accrual basis. Under the accrual basis, revenues are recorded on a company's income ...

Learn why airlines adjust revenues for air traffic liability under accrual accounting and how this impacts financial ...

Accrual basis accounting is typically the preferred method, but cash basis accounting may work for very small businesses. Many, or all, of the products featured on this page are from our advertising ...

Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small ...

You can get descriptions of Microsoft's (NASDAQ:MSFT) earnings most anywhere. Some will focus on the right things, some won't. In short, Microsoft had a great quarter but says that its next quarter ...

Many investors get intimidated by accounting concepts, but it's important to understand how a company brings in revenue, and how much of that money makes it to the bottom line in the form of profit.