Revenue is recorded (booked) “when” it is both earned and realizable. Earned means the delivery process of the good or service is fulfilled by the seller. Realizable means the money is reasonably assured of being collected by the seller. […]
Accrual accounting is a system of recognizing inflows and outflows. My goal in writing about it does not include a conversation about all the technical aspects that are well beyond the scope of “blog posts.” Rather, I want to provide a decent “feel” for the terminology so it can become more useful when you are analyzing the financials of companies, especially the Income Statement. […]
