O'Reilly logo

Business Analysis with Microsoft® Excel, Second Edition by Conrad Carlberg

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

The Earning Process

The process of earning revenue has a great deal to do with when revenue recognition occurs. Consider two major industries: manufacturing and merchandising. These two industries have very different earning processes, but from the standpoint of recognizing revenue they are quite similar.

A manufacturing firm acquires materials for production, makes the finished product from the materials, sells it to a wholesaler, a retailer, or end user, and finally collects payment for the product. The sale and the collection of the payment might occur simultaneously. They might also occur over a long period of time, if the manufacturer and the customer have negotiated conditions for a long-term receivable.

The earning process for a merchandiser ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required