What Is Revenue?
Most everyone thinks they know what this is. Money received in exchange for providing goods or services is revenue ...right? What about the government. Does the government have revenue? How about the new Trump Tower being built in Chicago. Does "The Donald" record construction funding as revenue at the building is being built? Finally when a copywriter negotiates fees based on pieces mailed, does the residual money flowing in often years later count as revenue?
The purpose in presenting a number of not so straight forward examples is simply to illustrate the point that revenue recognition isn't always as simple as it may seem.
This is not an accounting course. The Profit System is about helping companies make a lot more money. In that light we will stay focused on the most common revenue transactions which are Sales. Please Click Here to continue onto Sales.
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