Accounting of income

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:

  1. Introduction to income
  2. Cash sales vs credit sales
  3. Accrued income
  4. Deferred income
  5. Accrued income vs deferred income
  6. Point-in-time vs overtime revenue recognition
  7. Input vs output methods
  8. Percentage of completion method
  9. Sales discounts
  10. Sales returns
  11. Accounting of customer loyalty programs
  12. Consignment inventory
  13. Principal-agent relationship
  14. Bill and hold arrangement