Revenue and Expenses

Revenue and expense pages explain when income is earned, when costs belong in a period, and how those timing choices shape reported profit. This section ties together recognition rules, matching, and cost classification in plain language.

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• Revenue Recognition
• Accrued Revenue
• Bad Debt
• Matching Principle
• Cost of Goods Sold
• Income Statement

In this section

• Accrued Revenue
  Revenue earned before billing or cash receipt, usually recorded as an asset until invoiced or collected.
• Bad Debt
  Uncollectible receivable amount that must be recognized as expense directly or absorbed through an existing allowance estimate.
• Cost of Goods Sold
  Direct cost assigned to the inventory items sold during a period, reported against revenue on the income statement.
• Matching Principle
  Accrual-accounting principle that records expenses in the periods that benefit from or relate to the associated revenue.
• Revenue Recognition
  Rules and judgments used to decide when revenue should be recorded in the accounts and statements.