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In accounting the terms sales and revenue can be and often are used interchangeably to mean the same thing.
Revenue recognition principle to business. In other words companies shouldn t wait until revenue is actually collected to record it in their books. The revenue recognition principle states that revenue should be recognized and recorded when it is realized or realizable and when it is earned. Revenue recognition is a generally accepted accounting principle gaap that stipulates how and when revenue is to be recognized. Revenue recognition is an accounting principle that outlines the specific conditions under which revenue sales revenue sales revenue is the income received by a company from its sales of goods or the provision of services.
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