In this section, we’ll explain the accounting of income arising from the principal business activities as well as income from other sources. By the end of this section, you’ll develop sound concepts about the accounting of income, accrued income, deferred income and some arrangements where income is recorded on the basis of economic substance of transactions while disregarding their legal form.
Following chapters are included in this section:
- Introduction to income
- Cash sales vs credit sales
- Accrued income
- Deferred income
- Accrued income vs deferred income
- Point-in-time vs overtime revenue recognition
- Input vs output methods
- Percentage of completion method
- Sales discounts
- Sales returns
- Accounting of customer loyalty programs
- Consignment inventory
- Principal-agent relationship
- Bill and hold arrangement