Revenue and Income

Revenue and Income

Objective

• what is income earned Vs income received ?

• What is income received in advance ?

• What is income receivables ?

• How to calculate income earned ?

• Come up with your own "income earned formula"

Multiple Choice

On 1 January 2021, Jocelin Nails sold a nail package of $500 to Shi yi. Shi yi used the package to pay for treatment costing $250. How much did Jocelin Nails earned ?

• 250

• 500

• 750

Multiple Select

What is income received in advance ?

• it is amount owed to customer and so, it is a current liability

• deposit collected for future project

• amount of income collected when work is not done yet

• payment collected from customer

• It is a current asset as it is amount gained

Multiple Select

What is income receivables ?

• Amount owed to customers because of work not done

• Amount owed by customer after work has been done

• It is "under-payment" by customer

• It is a current asset like trade receivable

• It is a current liability as it is amount owed

Open Ended

Based on the 3 scenarios, form the income equation with the following format:

Beginning +Payment +ending = Income earned

Remember to use (1) Income received in Advance (A), (2) Income receivables (R)