Unformatted text preview: Losses: decreases in assets or increases in liabilities from peripheral transactions Selling something for more or less than they paid is a gain or loss Accrual Accounting Revenues when earned –expenses when incurred =net income accrual basis Revenues cash receipts- expenses cash payments=net income cash basis Revenue principle: revenues are recognized when 1. Goods or services are delivered, 2. There is persuasive evidence of an arrangement for customer payment, 3. The price is fixed or determinable and 4. Collection is reasonably assure...
View Full Document
- Revenue, Generally Accepted Accounting Principles, Accrual accounting revenues, Revenues cash receipts