Importance
The fundamental part of the accrual accounting system
The matching principle states...
Record expenses & the revenues they help generate within the same accounting period
The account credited when journalizing a sale on account
Revenue
The most common recording mistake related to accrued revenue
Not recording revenue when it is earned
The GAAP and IFRS do what for accounting
Set standards for accounting practices
True or false, a tire manufacturer selling tires to a car company on account would earn them accrued revenue
True
Revenue is earned when...
The product/service involved is delivered to customer
What the second number in trade credit represents
Discount period
The number of financial statements net income affects
3 (income statement, cash flow statement, statement of owner's equity)
The GAAP & IFRS emphasize...
integrity & objectivity
The result of using accrual accounting and accrued revenue
Accurate & consistent financial statements
The expense a service business cannot incur
Cost of Goods Sold
True or false, the gross method of adjusting accrued revenue transactions with trade credit uses the Interest Revenue account
False
The accounts that accrued revenue fall under if a company doesn't have an accrued revenue account
Accounts Receivable & Other Current Assets
The punishments for committing ethical violations by the GAAP & IFRS
prison time, revoking of licenses & fines
The man pictured on the first slide of the recording accrued revenue section
Luka Doncic