Unrealized
The revenue recognition principle is a cornerstone of accrual accounting together with matching principle. They both determine the accounting period, in which revenues and expenses are recognized. According to the principle, revenues are recognized when they are realised or realisable, and are earned (usually when goods are transferred or services rendered), no matter when cash is received. In cash accounting – in contrast – revenues are recognized when cash is received no matter when goods or services are sold.
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Famous quotes containing the word unrealized:
“I am absolutely sure that a lot of Daddy anger has more to do with unrealized dreams than with messy rooms. Trust me. You’re not really angry at your kids. You’re angry at somebody else, somebody who is a far less distinguished person than he dreamed of being.”
—Hugh O’Neill (20th century)