Post by shakilall25 on May 18, 2024 10:44:25 GMT
Specific example : Company X has its headquarters in Hanoi and a branch in Ho Chi Minh City. On December 1, 2023, Company X sold 100 products to its branch in Ho Chi Minh City at a selling price of 10,000 VND/product. The cost price of these 100 products is 8,000 VND/product. Accounting at Company X's headquarters will record internal revenue as follows: Debit Account 136 - Internal receivables (branch) Credit: Account 512 - Internal sales revenue The amount of 100,000,000 VND will be recorded on Company X's consolidated financial statements as internal revenue. Abnormal revenue Abnormal revenue is short-term, irregular revenue of a business, usually coming from liquidation of assets. For example, liquidation of factories, machinery, equipment, liquidation of investments, land transfer, projects, etc. According to Vietnamese accounting standards, extraordinary revenue is defined as revenue arising from activities that are not part of the enterprise's normal business activities and are not expected to repeat in the future. Abnormal revenue is recorded in separate financial statements from normal business revenue.
This helps investors and stakeholders more accurately Japan Phone Number assess the financial situation of the business. Revenue classification Meaning of revenue Measure of business performance of an enterprise Basis for calculating profit Capital source for businesses to reproduce and develop Measure of business performance of an enterprise Revenue is one of the important metrics to evaluate the business performance of a business. It represents the total value of money that a business earns from selling goods and providing services in a certain period of time. High revenue shows that the business is operating effectively and generating a lot of profit. However, using only revenue without combining it with other metrics can result in a comprehensive assessment of business performance. Some other factors to consider include profits, profitability ratios, debt repayment ability, sales growth, operating costs,... Basis for calculating profit Profit is the difference between revenue and costs.
Therefore, revenue is the basis for calculating profits. However, it should be noted that high revenue does not mean high profits. If a business has high revenue but also high costs, profits may be low or even a loss. On the contrary, businesses with low revenue but low costs can have high profits. Therefore, revenue is only one of the important factors to evaluate the business performance of a business. To accurately evaluate business efficiency, it is necessary to consider revenue along with other factors such as costs, cost of goods sold, selling price,... Capital source for businesses to reproduce and develop Revenue is used to: Payment of production and business costs incurred during the period, including raw material costs, labor costs, depreciation costs, loan interest costs,... Generate profits for businesses. Accumulate capital for reproduction and development. Revenue is an important source of capital for businesses to reproduce worn out and outdated production factors.
This helps investors and stakeholders more accurately Japan Phone Number assess the financial situation of the business. Revenue classification Meaning of revenue Measure of business performance of an enterprise Basis for calculating profit Capital source for businesses to reproduce and develop Measure of business performance of an enterprise Revenue is one of the important metrics to evaluate the business performance of a business. It represents the total value of money that a business earns from selling goods and providing services in a certain period of time. High revenue shows that the business is operating effectively and generating a lot of profit. However, using only revenue without combining it with other metrics can result in a comprehensive assessment of business performance. Some other factors to consider include profits, profitability ratios, debt repayment ability, sales growth, operating costs,... Basis for calculating profit Profit is the difference between revenue and costs.
Therefore, revenue is the basis for calculating profits. However, it should be noted that high revenue does not mean high profits. If a business has high revenue but also high costs, profits may be low or even a loss. On the contrary, businesses with low revenue but low costs can have high profits. Therefore, revenue is only one of the important factors to evaluate the business performance of a business. To accurately evaluate business efficiency, it is necessary to consider revenue along with other factors such as costs, cost of goods sold, selling price,... Capital source for businesses to reproduce and develop Revenue is used to: Payment of production and business costs incurred during the period, including raw material costs, labor costs, depreciation costs, loan interest costs,... Generate profits for businesses. Accumulate capital for reproduction and development. Revenue is an important source of capital for businesses to reproduce worn out and outdated production factors.