If the Contract Is Not in Writing, Revenue Cannot Be

question 193

True/False

If the contract is not in writing, revenue cannot be recognized, even though goods have been transferred and payment is expected to be received in exchange.

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Definitions:

Net Cash Flow

The difference between the cash inflows and cash outflows in a business over a specified period.

Depreciation Expense

A non-cash expense recorded on the income statement, reflecting the gradual reduction of an asset's value over its useful life.

Net Loss

When expenses total more than revenue, the result is net loss.

Supplies on Hand

An accounting term representing the total value of the physical goods, materials, and supplies a company possesses that have not been used yet.