Revenue Recognition Homework Help

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There are protocols for every task. Unless we perform our tasks outside the protocol boundaries, we will not be harmed. In accounting too, the rules are recognised by Financial Accounting Standard Board. GAAP or Generally Accepted Accounting Principles take the responsibility for the governance. It is a set of protocols that provides information regarding the recording of accounting information and report them in the financial statement of a company. Our article over revenue recognition homework help is based on the various agendas based on revenue recognition. This online service is initiated to impart fundamental knowledge about the mentioned topic among students.

Revenue recognition

It is a concept that is based upon the principles provided by GAAP. A few revenues are recorded as soon as the payment is received from the buyer. But this is not necessarily the case in this. In revenue recognition, a payment is considered as part of the revenue only when it is realized and not when it is received. There are certain recognition criteria for the payment that is needed to be understood by the accountant to put the payment under the category of recognized revenue. They are listed below by our revenue recognition homework help team.

1. The manner in which the revenue is accepted should be considered completed. This is needed to be done in order to consider the revenue in the next accounting period.
2. There should be a confirmation about the receiving of the payment in the near future, after it has been earned.
3. The amount of money that is associated with generation of revenue should be considered in the same time period as of the revenue to get considered in the accounting period. This is also called as matching principle by GAAP.

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Example of revenue recognition

A purchase is always considered a sale from the seller’s point of view. And as our revenue recognition homework help team experts suggest, only if the product is exchanged with actual money, this sale word is considered. In certain cases if the revenue is not equal to the same on the paper, the investor in the business may incur loss. But there are certain provisions for investors, to get saved from the managers who show fake transactions that does not sum up with the actual revenue generated for the business.

Exceptions to the revenue recognition rule

There are always exceptions in any law, in order to provide simplicity to the operation and relaxation to the user. In our revenue recognition homework help article, we provide such exceptions that are applied to the revenue recognition under certain circumstances.

1. For the projects that take rather long time to finish, payments can be considered in installments or stages. In this the exception for revenue recognition principle is considered. For example construction projects, that take years of span. The payment for them can be considered after certain percentage completion of the construction.
2. These exceptions rely in the middle of completion of process for a product and sale of that product. The revenue are count in between for certain situations. For example, the extraction of oil and natural gas is one such exception. The consumer as well the producer know its value recorded for the natural resources.
3. The manner of accounting that is decided by a person and the ultimate methods of recording the revenues. In such exceptions the revenue recognition is applied to just accrual based accounting specifics.
Our revenue recognition homework help team experts are well versed with every situation because of their exceptional work experience in the same field.

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