Revenue Recognition. Intermediate Accounting

In this session, I explain revenue recognition. Revenue recognition is a generally accepted accounting principle (GAAP) that identifies the specific conditions in which revenue is recognized and determines how to account for it. Typically, revenue is recognized when a critical event has occurred, and the dollar amount is easily measurable to the company.

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[arund]

Thank you very very much Sir, It's very Helpful.

[peakptosecretary]

How do we account for Commissions under this new Revenue recognition method?

[jamesbondani]

Point 4. This should be FALSE. Because the customer has not made any contract and he is buying the shirt by paying cash without contract.