Saturday, April 18, 2009

Revenue Recognition Definition

Revenue recognition is an accounting term used to refer to the recording of a sale or service with a journal entry into a company's accounting records. Revenue will be recognized only when certain criter has been met. This criteria for revenue recongnition includes:

1. The work has been substantially completed by the company for a customer.
2. Cash or a secured future payment (credit note) has been received by the company

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