Revenue Recognition
Revenue recognition is the accounting principle that determines when income should be recorded. Under accrual accounting, revenue is recognised when earned not necessarily when cash is received. Following standards like IFRS 15 or ASC 606, it ensures revenue is matched to performance obligations and reported accurately.
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Reverse Entry
A reverse entry is made at the beginning of a new accounting period to cancel out an adjusting journal entry…
Retained Earnings
Retained earnings represent the cumulative net profit a company keeps after distributing dividends to shareholfers. Reported under equity on the…
Running costs
Running costs are recurring operational expenses necessary for keeping the business functioning day-to-day. This includes fuel, maintenance, salaries, insurance, and…
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