revenue recognition

revenue recognition definition - finance
The process and policy that is used to record revenues. Although revenue recognition is a very straightforward process for a business such as a retail store, it is more complicated for other companies that sell large, expensive contracts or services that last over a several-year period. In this situation, management discretion is involved.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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