会计英语unit10_Revenue,_Expense__Profit教材教学课件.pptVIP

Unit 10 Revenue, Expense Profit Ⅰ Revenue Revenues are cash inflows or other enhancements of assets of an entity or settlement of its liabilities or a combination of both in the normal operation of business activities. Those inflows result in increases in equity, other than increases relating to contributions from equity participants. * Revenue includes only the gross inflows of economic benefits received and receivable by the entity on its own account. Amounts collected on behalf of third parties such as sales taxes, goods and services taxes and value added taxes are not economic benefits which flow to the entity and do not result in increases in equity. They are excluded from revenue. * Recognition of revenue Revenue Recognition Principle: Revenues are recognized when they are realized or realizable, and are earned (usually when goods are transferred or services rendered), no matter when cash is received Amount: Revenue shall be measured at the fair value of the consideration received or receivable * Sale of goods Revenue from the sale of goods shall be recognized when all the following conditions have been satisfied: (a) the entity has transferred to the buyer the significant risks and rewards of ownership of the goods; (b) the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; (c) the amount of revenue can be measured reliably; (d) it is probable that the economic benefits associated with the transaction will flow to the entity; and (e) the costs incurred or to be incurred in respect of the transaction can be measured reliably. * Revenue from sale of goods (1)Cash sale Dr. Cash Cr. Sales revenue * Dr. Accounts Receivable Cr. Sales revenue (2)Credit sale Dr. Cash Sales Discount Cr. Accounts Receivable * (2)Credit sale Dr. Bad Debt Expense Cr. Provision for Bad Debts * Interest, royalties and dividends Re