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Unformatted text preview: Revenue Principle
When the company delivers the goods or services UNEARNED REVENUE is reduced and REVENUE is recorded.
Cash received before revenue is earned
Received Company Delivers Cash (+A) xxx Unearned revenue (+L) xxx
Revenue will be recorded when earned. 3-13 Revenue Principle Typical liabilities that become
revenue when earned include . . .
(Goods or services due to
over time will (Earned when goods
or services provided) Rent collected in advance Rent revenue Unearned air traffic revenue Air traffic revenue Deferred subscription revenue Subscription revenue 3-14 The Matching Principle
Resources consumed Resources consumed to earn revenues in an to earn revenues in an...
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