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Making sense of financial statements. June 30, 2023

Motley Fool Money

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The Importance of Revenue Recognition

Of the 2,200 companies on the ASX, there are hundreds that don't have any revenue whatsoever. No business has revenue on day one, right? So it's not as though it's an instant no, but just know that you are... There is a much bigger hill to climb. That's important. Just sales, basically. How many, what's the dollar value of all the services and goods that I sold? It's really one of the cleanest items there because it's sort of unadulterated in the sense that they're... I'm going to say you should be gone. Well, you are right because there's this concept of revenue recognition.

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