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Explorer Group Started Business by Manufacturing Electronic Appliances Branded as Fortune

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Explorer Group started business by manufacturing electronic appliances branded as Fortune appliances.The company later launched other brands such as Fortune apparels and Fortune optical.This is an example of:


Definitions:

Recognition

In accounting, recognition refers to the formal recording of an item in the financial statements, acknowledging its existence and the fact that it meets the criteria for financial reporting.

Revenue

Income that a business receives from its normal business activities, usually from the sale of goods and services to customers.

Deferral

A deferral occurs when cash related to a future revenue or expense has been initially recorded as a liability or an asset.

Unearned Revenue

Money received by a business for goods or services that have yet to be delivered or performed.

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