This practice is usually employed by accountants whenever a company is experiencing money shortages to ease really tight cash flow circumstances.

This practice is usually employed by accountants whenever a company is experiencing money shortages to ease really tight cash flow circumstances.

If the product sales income is gotten, an element of the quantity is scheduled as “Received in advance” plus the recognition of revenue postponed. This permits for postponing the recognition of income to a period that is later the business enterprise has sufficient cash to pay for the income tax. Continue reading “This practice is usually employed by accountants whenever a company is experiencing money shortages to ease really tight cash flow circumstances.”