In this section, we’ll explain the accounting of income arising from the principal business activities as well as income from…
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…
What are customer loyalty programs? Companies often use these special programs or schemes with the aim to achieve customer loyalty…
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…
We know that when the goods or services are transferred continuously, and the customer has control over the goods or…
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…