Small businesses, especially in the service sector, may collect revenue in advance of delivering their offerings. For example, a tanning salon might sell a package of 12 sessions for an upfront ...

Many investors get intimidated by accounting concepts, but it's important to understand how a company brings in revenue, and how much of that money makes it to the bottom line in the form of profit.

Accrual accounting requires a business to record revenues and expenses in the period in which they are earned or incurred, regardless of when payment occurs. When payment occurs on a date that is ...