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Companies earn revenues from the sale of goods or services to customers. Revenues normally are reported for goods or services that have been sold to a customer whether or not they have yet been paid for. Retail stores such as Wal-Mart and McDonald's often receive cash. at the time of sale. However, when Maxidrive sells its disk drives to Dell and Apple, it receives a promise of future payment called an account receivable, which later is collected in cash. In either case, the business recognizes total sales (cash and. credit) as revenue for the period. Various terms are used in income statements to describe different sources of revenue (eg, provision of services, sale of goods, rental of property). Maxidrive lists only one, sales revenue, in its income statement. The company receives revenue from the sale of goods or services to customers. Revenues are reported as normal for a product or service that has been sold to a customer or not, they have not been paid. Retailers tend to get cash at the time of the sale. But the store was sold in the form of contracts for future payments, called receivables, which are collected in cash. In both cases, businesses realize total sales. (Cash and credit) to income for the period. Conditions to be applied to the income statement to explain the sources of income are different. (Like services, merchandising, rental, property).
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