COST ACCOUNTING
COST ACCOUNTING STANDARDS
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Question
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The amounts earned from selling products or services; also called sales. Inflows of assets received in exchange for goods or services provided to customers as part of the major or primary operations of the business; may occur as inflows of assets or decreases in liabilities.
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A business owned by one individual that is not organized as a corporation; also called a sole proprietorship
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Detailed explanation-1: -While net income is a company’s earnings, gross profit can be defined as the money earned by a company after deducting the cost of goods sold.
Detailed explanation-2: -Unearned revenue is recorded on a company’s balance sheet as a liability. It is treated as a liability because the revenue has still not been earned and represents products or services owed to a customer.
Detailed explanation-3: -Sales revenue is the income received by a company from its sales of goods or the provision of services. Sales revenue can be shown on the income statement by either the gross revenue amount or net revenue. Gross revenue is before contra-revenue accounts like allowance for sales returns and bad debt expense.
Detailed explanation-4: -Under the accrual accounting method, revenue is recognized and reported when a product is shipped or service is provided.