财务会计英语unit 5Revenue讲解材料.ppt

Revenue;Contents;Section 1 Basic Concepts Relating to Revenue Recognition;1.2 Revenue recognition (收入的确认) The money received is not necessarily the revenue. Sometimes it’s a liability called unearned revenue, like rent or insurance on property which are often paid in advance. And there is accounts receivable which represents sales made on credit. the third example is accrued revenue. Accrued revenue is revenue that has been earned by the business but has not yet been paid to the business, for example, interest revenue of a bank, which is earned daily but paid yearly. ;1.3 The prudence principle (谨慎原则) The principle is clearly intended as a preference for understatement rather than overstatement of assets or revenues when dealing with measurement of uncertainties. 1.4 The realization principle (收入实现原则) Realization refers to inflows of cash or claims to cash arising from the sale of goods or services. The realization principle states that the amount recognized as revenue is the amount that is certain to be realized, i.e. the customers are certain to pay. ;5.4 It happens that cash is received ____ or ____ than the time revenue is to be recognized. 5.5 Revenue that has been earned by the business but has not as yet been paid to the business is called _______ revenue. 5.6 The _________ principle is intended as a preference for understatement rather than overstatement of assets or revenues when dealing with measurement of uncertainties.;5.7 The ___________ principle states that the amount recognized as revenue is the amount that is certain to be realized. 5.8 The _________ principle is applied by determining the items and amounts of revenue and then matching the items of cost to the revenue. 5.9 A product was sold for $800 while the cost of it was $500. Determine the amount of income.;Section 2Accounting for Revenue; Accounting for receivables (应收款项的核算) Example 5.2 Assume that during the month of July, 2007, Whitman Company had credit sales