In a perfect world, sales and payment of sales would always occur at the same time, but in the real world, they often don't. The GAAP Revenue Recognition rules help explain when a company can recognize sales on their income statement, particularly if the timing of sale and cash is different.
This video was created in relation to the Utah State CTE standards for the Accounting II High School course. Specifically, this video prepares students to complete Strand 3, Standard 2: Describe the process for journalizing and posting transactions related to sales and cash receipts.
