wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

What is the journal entry to recognise revenue?


Open in App
Solution

A revenue recognition account is when an entry is recorded only when the revenue is being paid and earned, and it is not related to when the cash is collected.

For example, a parking lot cleaning agent can recognise their revenue the moment they finish the cleaning services each day but their actual revenue earned can be several days from the day of cleaning.

Also read:


flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Financial Statements of NPO
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon