Royalty
A royalty is a payment made by one party (licensee) to another (licensor) for the use of intellectual property, such as trademarks, patents, or copyrights. In accounting, royalties are treated as expenses for the licensee and revenue for the licensor. They may be fixed or percentage-based.
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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…
Revenue Recognition
Revenue recognition is the accounting principle that determines when income should be recorded. Under accrual accounting, revenue is recognised when…
Retained Earnings
Retained earnings represent the cumulative net profit a company keeps after distributing dividends to shareholfers. Reported under equity on the…
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