SSC CGL Exam > SSC CGL Videos > SSC CGL Tier 2 - Study Material, Online Tests, Previous Year > Revenue Recognition (Realisation) Concept
Revenue Recognition (Realisation) Concept Video Lecture | SSC CGL Tier 2 - Study Material, Online Tests, Previous Year
|
1365 videos|1312 docs|1010 tests
|
FAQs on Revenue Recognition (Realisation) Concept Video Lecture - SSC CGL Tier 2 - Study Material, Online Tests, Previous Year
| 1. What is the revenue recognition concept? |  |
Ans. The revenue recognition concept refers to the accounting principle that outlines when and how revenue should be recognized in a company's financial statements. It provides guidelines for determining the timing and amount of revenue to be recorded, ensuring that it is recognized when it is earned and realizable.
| 2. Why is revenue recognition important in accounting? | |
Ans. Revenue recognition is crucial in accounting as it affects a company's financial statements and performance evaluation. Accurate and timely recognition of revenue allows stakeholders to assess the company's profitability, financial health, and overall performance. It also ensures consistency and comparability in financial reporting across different entities.
| 3. What are the key principles of revenue recognition? | |
Ans. The key principles of revenue recognition include:
1. Revenue is recognized when it is earned: Revenue should be recognized when the goods are delivered or services are rendered, and the company has substantially fulfilled its obligations.
2. Revenue is recognized when it is realized or realizable: Revenue should be recognized only when it is reasonably certain that the company will receive payment or obtain an economic benefit.
3. Revenue is measured at its fair value: The amount of revenue recognized should represent the fair value of the goods or services exchanged at the time of the transaction.
| 4. How does revenue recognition impact financial statements? | |
Ans. Revenue recognition directly impacts a company's financial statements. It affects the income statement by determining the amount of revenue reported, which ultimately affects the company's profitability. It also impacts the balance sheet by influencing accounts receivable, deferred revenue, and other related accounts. Additionally, revenue recognition affects the statement of cash flows, as it determines the timing of cash inflows from sales.
| 5. What are some common challenges in revenue recognition? | |
Ans. Some common challenges in revenue recognition include:
1. Determining the appropriate timing of revenue recognition, particularly for long-term contracts or projects.
2. Assessing the collectability of revenue and recognizing bad debts.
3. Allocating revenue among different performance obligations in complex transactions.
4. Identifying and accounting for variable consideration, such as discounts, rebates, or performance bonuses.
5. Ensuring compliance with the specific revenue recognition guidelines outlined in accounting standards, such as ASC 606 or IFRS 15.
About this Video
|
4.67/5 Rating |
|
Nov 15, 2024 Last updated |
Video Description: Revenue Recognition (Realisation) Concept for SSC CGL 2024 is part of SSC CGL Tier 2 - Study Material, Online Tests, Previous Year preparation.
The notes and questions for Revenue Recognition (Realisation) Concept have been prepared according to the SSC CGL exam syllabus.
Information about Revenue Recognition (Realisation) Concept covers all important topics for SSC CGL 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Revenue Recognition (Realisation) Concept.
Introduction of Revenue Recognition (Realisation) Concept in English is available as part of our SSC CGL Tier 2 - Study Material, Online Tests, Previous Year for SSC CGL & Revenue Recognition (Realisation) Concept in
Hindi for SSC CGL Tier 2 - Study Material, Online Tests, Previous Year course. Download more important topics related with notes, lectures and mock test series for
SSC CGL Exam by signing up for free.
Description
Video Lecture & Questions for Revenue Recognition (Realisation) Concept Video Lecture | SSC CGL Tier 2 - Study Material, Online Tests, Previous Year - SSC CGL full syllabus preparation | Free video for SSC CGL exam to prepare for SSC CGL Tier 2 - Study Material, Online Tests, Previous Year.
Information about Revenue Recognition (Realisation) Concept
Here you can find the meaning of Revenue Recognition (Realisation) Concept defined & explained in the simplest way possible.
Besides explaining types of Revenue Recognition (Realisation) Concept theory, EduRev gives you an ample number of questions to practice Revenue Recognition (Realisation) Concept tests,
examples and also practice SSC CGL tests.
|
1365 videos|1312 docs|1010 tests
|
|
Explore Courses for SSC CGL exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
ppt
,Important questions
,practice quizzes
,Viva Questions
,Objective type Questions
,Online Tests
,Previous Year
,Free
,Sample Paper
,study material
,Previous Year
,MCQs
,video lectures
,Revenue Recognition (Realisation) Concept Video Lecture | SSC CGL Tier 2 - Study Material
,shortcuts and tricks
,Revenue Recognition (Realisation) Concept Video Lecture | SSC CGL Tier 2 - Study Material
,Online Tests
,Summary
,Extra Questions
,Exam
,Online Tests
,Semester Notes
,mock tests for examination
,Previous Year
,Previous Year Questions with Solutions
,past year papers
,Revenue Recognition (Realisation) Concept Video Lecture | SSC CGL Tier 2 - Study Material
;
Study Revenue Recognition (Realisation) Concept on the App
Students of SSC CGL can study Revenue Recognition (Realisation) Concept alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Revenue Recognition (Realisation) Concept,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Revenue Recognition (Realisation) Concept is prepared as per the latest SSC CGL syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup