What is a bill and hold arrangement? It is an arrangement or a contract under which the seller bills the…
What is a principal-agent relationship or an agency relationship? It is an arrangement where one party (the principal) appoints another…
Consignment inventory refers to inventory that is sent (consigned) by one party to another party (consignee). Legally, the ownership of…
Before learning the accounting, let’s understand what are customer loyalty programs? Companies often use these special programs or schemes with…
As the name suggests, sales returns refer to goods returned by the customers after buying them. Sales return is not…
Sales discount is a reduction in the amount of sale price which is often used by companies as a marketing…
Percentage of completion method is a method for accounting of revenues and related expenses of long-term contracts, where the performance…
When goods or services are transferred continuously, and the customer has control over the goods or services transferred to date,…
Revenue is recognized when the promised goods or services are transferred to the customer. Goods and services are assets, even…
Definitions – Accrued income vs deferred income Accrued income represents income that has been earned but not yet billed or…