Revenue Recognition

Revenue is a mode of taxation that is charged by the central governing authority for the purpose of generation income for the government. Revenue is charged on various items from the companies or on businesses that are conducted within the jurisdiction of the ruling authority (Bragg, 2010). Revenue generation is a process that is crucial as it touches on the income and profit made by the body that is being charged. For this reasons, there are measures and rules that govern the process. These rules dictate what is to be taxed as revenue and the criterion to be followed in order to identify what revenue is. Thus, the need to recognize what revenue is for the various companies and organizations.

These criteria that regulate the process are usually documented as laws that are to be adhered to. There are objectives to identify what the revenue is key since;...
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