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"Revenue: sales recorded." Small clarification, this is sales recognized. For example, if your customer signs a 2 year service agreement at the start of a quar
by tqi 8y ago
"Revenue: sales recorded."
Small clarification, this is sales recognized. For example, if your customer signs a 2 year service agreement at the start of a quarter, the revenue reported that quarter should be 1/8th of the total contract amount (assuming you are recognizing revenue at a flat rate).
- jacques_chester 8y agoThankyou, this is an important correction. I expect a number of Google's contracts will be structured this way. For those following along, spending some time with an introductory financial accounting book or textbook is a very useful way to understand a lot of business behaviour. I took a 101-level accounting course during my computer science degree and it has proved to be a very useful thing to have learned about.