Businesses have two options when accounting for inventory -- perpetual and periodic. In a perpetual inventory system, inventory is updated after each sale and purchase transaction through a series of ...

When a company generates revenue, the effect of the transactions are recorded on its books and shown on the financial statements at the end of the period. The timing of when revenue is increased from ...

Now that the various classifications of revenue have been defined, it is important to identify what is revenue. Identifying what qualifies as revenue is critical not only from an accounting and ...