Pp

 Two things to notice:  1. revenues are normally credited  2.drawings and expenses are normally debited  Revenues bring assets into a business while drawings and expenses have the effect of taking assets out of a business

 Was a part of GAAP and continues with the IFRS  Requires that revenue be recorded in the accounts at the time the transaction is completed  It is important to take revenue into the accounts correctly, otherwise the income statements of a company will be incorrect

 Also called the financial period or accounting period, is the period of time over which earnings are measured  It could be half-yearly, quarterly, or monthly. Net income or net loss is provided on an income statement and is used for income tax purposes

 Is an accounting standard that provides that accounting will take place over specific time periods known as fiscal periods. Fiscal periods are of equal length and are used when measuring the financial progress of a business

 Separating revenues and expenses into specific fiscal periods challenges accountants to follow two important steps  1. They must be careful to record the proper amount of revenue in the proper period  2. They must subtract only those expenses that helped to earn the revenue they recorded in step one