Where Revenue Is Not Recognised Until Cash Is Received It

question 22

True/False

Where revenue is not recognised until cash is received it is possible that the revenue recognition criteria 'substantial completion' has not been met prior to this event.

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Definitions:

Both Parties

Refers to the two or more entities involved in a legal agreement or negotiation.

Gross Sales

The total sales revenue of a company before any deductions are made for returns, allowances, or discounts.

Royalty Fees

Royalty fees are payments made by one party (the licensee) to another (the licensor) for the right to use the licensor's property, typically intellectual property, under agreed terms.

Percentage

A portion, share, or rate expressed as a fraction of 100.