Basic Accounting Knowledge: Revenue Series

Income refers to the total economic interests that the owners will have to increase in their daily activities and have nothing to do with the capital invested by the owners.

The income related to the new income criteria includes the sale of commodity income, the provision of labor income and the pfer of the right to use assets.

The main business income refers to the revenue of the main business, such as the sale of goods and services provided by the enterprise according to the income criteria.

Cash discount refers to the deduction of debt provided by the creditor to the debtor in order to encourage the debtor to pay within the prescribed time limit.

The total price law refers to the amount of cash sales discount, and the amount of sales proceeds should be determined according to the amount before the deduction of cash discount.

Cash discounts are included in the current profit and loss when the actual discount occurs.

Commercial discount refers to the price deduction given by the enterprise to promote the sale of goods on the price of the commodity.

The net price method refers to the amount of merchandise sold, and the amount of sales proceeds should be determined according to the amount deducted from the commercial discount.

The sale discount refers to the concessions granted by the enterprise on the selling price due to the unqualified quality of the goods sold.

Sales return refers to goods sold by enterprises because of their quality and varieties which do not meet the requirements.

The following acts deemed to be sales, units or individual operators are regarded as goods sold:

(1) deliver goods to others for sale;

(2) sale of consignment goods;

(3) taxpayers who have more than 2 institutions and carry out unified accounting shall deliver their goods from one to another.

(4) the goods that are produced or commissioned are used for non taxable items;

(5) invest the goods produced, commissioned, processed or purchased for investment to other units or individual operators.

(6) distributing goods produced or commissioned to shareholders or investors;

(7) the goods that are produced or commissioned are used for collective welfare or personal consumption;

(8) the goods that are produced, commissioned, processed or purchased will be presented to others free of charge.