M****9
发帖数: 912 | 1 There is one sentense in the notes:
"Under the accrual method of accounting, revenue is recognized when earned
and expenses are recongnized when incurred."
What's the meaning of this sentense? ?Especially, what is accrual method and
what is incurred?
thanks! | p**z
发帖数: 1311 | 2 accrual method is a basis of accounting.
check it out online..accrual vs. cash
incurred just means it happened.
you can only recognize revenue when you actually earned it
example: someone tells you they want to buy your product on 12/31/09. You
don't ship it until 1/5/10 of the following year. You can not recognize the
revenue in 09.
Expense- you received services in FY'09, but didn't pay until Jan.10. You
still have to recognize the expense in FY'09 because you received the
service (incurred) | M****9
发帖数: 912 | |
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