PptxGenJS Presentation

Accrual Basis Accounting. 1. Definition. • Revenues and expenses are recorded when they are earned or incurred, not when cash is received or paid..

Revenue Recognition Principle. Definition. • Revenue is recognized when it is earned, regardless of when payment is received..

Matching Principle. Definition. • Expenses should be recorded in the same period as the revenues they help to generate..

Accrued Revenues. Definition. • Revenue that has been earned but not yet received or recorded..

Accrued Expenses. 1. Definition. • Expenses that have been incurred but not yet paid or recorded..

Prepaid Expenses. Definition. • Payments made in advance for goods or services to be received in the future..

Balance Sheet Elin eend •bscriptions. Unearned Revenue (Deferred Revenue).

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