What Is Profit In Accounting Terms

Profit, in accounting, is an income distributed to the owner in a profitable market production process (business). Profit is a measure of profitability which is the owner’s major interest in the income-formation process of market production. There are several profit measures in common use. Income formation in market production is always a balance between income […]

What Is A Receipt In Accounting?

Image by/from National Museum of American History A receipt (also known as a packing list, packing slip, packaging slip, (delivery) docket, shipping list, delivery list, bill of parcel, manifest or customer receipt) is a document acknowledging that a person has received money or property in payment following a sale or other transfer of goods or […]

Revenue Recognition Methods In Accounting

##IMAGE_HERE## The revenue recognition principle is a cornerstone of accrual accounting together with the matching principle. They both determine the accounting period in which revenues and expenses are recognized. According to the principle, revenues are recognized when they are realized or realizable, and are earned (usually when goods are transferred or services rendered), no matter […]

The Different Types Of Revenue

Image by/from RaphaelQS In accounting, revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers. Revenue is also referred to as sales or turnover. Some companies receive revenue from interest, royalties, or other fees. Revenue may refer to business income in general, […]

Trading statement

Image by/from RaphaelQS The trading statement is an expanded version of sales portion of the Income statement. The trading statement’s main objective is to determine sales, cost of sales and gross profit. The trading statement forms part of effective bookkeeping within the accounting discipline. Sales – Cost of Sales = Gross Profit The main parts […]