MASTERCLASS Investment – What is Accrued Revenue / Sales / Income?

MASTERCLASS Investment – What is Accrued Revenue / Sales / Income?

Investment – What is Accrued Revenue / Sales / Income?

Revenue is the amount of sales a company actually makes over a specific period, including discounts and deductions for returned sales, etc. It is the “top line” or “gross income” figure from which costs of goods are subtracted to determine gross profit.

Accrued revenue is revenue for goods or services that have been sold or completed but may have not yet been billed (sometimes) and/or paid for. Accrued revenue is income that has been raised but not received, for example billing for monthly rent that is due in arrears, or following the monthly rental period. The income has been earned and accrued (since an individual or company rented the item) but the revenue has not been received.

It is recorded on the Balance Sheet as an asset account.

This is important to the valuation of a company, particularly in the service industry, where invoicing/billing typically occurs after the work or service is complete. Without this on financial reports, the company would appear to have much lower revenues, and may not have a fair method to balance expenses associated with the revenue accrued.

Want to learn the core issues of share investing?

See our slides SMSF & Shares Overview to get a quick session where you can learn to easily understand Company Financial Statements, how to find healthy companies, what Tools and Ratios to use, work on examples, and also includes how to get better investment outcomes.

If you have questions, call 0407 361 596


About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit will SET UP your SMSF and provide investment education for a better result. We take care of all your administration, accounting, ATO lodgement and audit of SMSFs, working with you and your advisors. If you want advice we can arrange one of our recommended advisors and accountants to meet with you, as we do not give advice, but take instruction only. Take control of your super, including property shares and other assets. Learn how to be your own advisor - make better decisions - by being mentored and coached to invest your own super wisely and strategically by qualified partners. Book to come to an event to find out more, or - Call us 0407 361 596, no obligation FREE strategy call.
This entry was posted in Investing - Stock Fundamentals, Masterclass Investment, SMSF Investing and tagged , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s