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How have accounting information systems affected the recording of the revenue cycle?

How have accounting information systems affected the recording of the revenue cycle?

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Answer #1

Revenue recognition is defined by the accounting principles.

There exists 2 accounting boards which governs the principles named IASB and FASB .

They define when a company can recognise revenues. So if any of pre requisite conditions don't match , company can't recognise revenues and even if they do , it will be treated as accounting manipulation act by the company which is illegal .

Gernally a company recognises revenue when the buyer takes the full ownership of the product and accepts the risk from the company and accepts to pay for the product purchased.

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