Revenue Recognition Principle In Hindi

Revenue recognition principle is an important accounting principle which is the main difference between cash basis accounting and accrual basis accounting in cash basis accounting revenues are simply recognized when cash is received no matter when and how the services were performed or goods delivered.

Revenue recognition principle in hindi. The revenue recognition standard asc 606. The revenue recognition principle dictates that all types of incomes should be recorded or recognized when a cash is received b at the end of accounting period c when they are earned d when interest is paid. Revenue means cash inflow generated from sale of goods or services. G revenue recognition concept.

The revenue recognition principle using accrual accounting requires that revenues are recognized when realized and earned not when cash is received.