Revenue Recognition: Signed, Sealed, Delivered (and paid at a later date)

A business is a revenue-generating machine. Revenue comes in as product goes out and the cycle continues. However, when can you claim your revenue? For most businesses, a dollar in hand isn't when revenue is booked. Instead, followers of accrual accounting count their revenue from when the sale is completed, i.e. the product or services are delivered, though they may have extended trade credit and do not expect to receive payment for another 30 days. Accrual accounting is more than an…