Join Date: Feb 2006
Bikes: 05 giant rincon, '78 Centurian Elite
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Actually, (according to my accounting for non-business majors class I am currently in) the revenue would not be recorded until the goods change hands. This is known as the revenue recognition principal. The transaction would be recorded as unearned revenue and would be counted as a liability against the cash until the transaction is completed, at which point it is counted as profit. This means that as far as determining income, the government wouldnt see anything. Of course, I could be very wrong, and this may not be the same for canada.