Originally Posted by
LILY2609
Depends when it's EARNED.
In accrual-based accounting:
It should be recognized in the p&l in the period that it is earned.
If you've received payment in a period in advance of earning the revenue, then it is recorded on the balance sheet as Deferred Revenue. This liability should be relieved to the p&l in future period(s) as it is earned.
Hope this helps.
Hey Lily,
Nice to see you here and I am glad you are joining in…
Just be on the lookout for obvious homework questions. This one clearly looks like homework to me but I could be wrong. Technically we should not answer homework here as this section is for real world questions. See this:
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However, if someone at least try’s to answer the question for themselves I will give them some help. If they don’t even try I usually ask the question be moved to the homework section my clicking (report inappropriate post) next to their post.
Also take a look at the expectations for giving homework help that can be found here:
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Again glad to see you here and just wanted to bring these things to your attention.