This is the case of Ocean County Bridge Toll Theft in accounting.
2006-11-27 13:35:14 · 4 answers · asked by Anonymous in Business & Finance ➔ Corporations
Yes. This is basic accounting principle.
(1) income is being recognised when it can be determined accurately and have accrued to the company. In this case, unless the company is not able to numerate the amount of tolls stolen, it must recognise the toll as income
(2) The 'Stolen Toll" will be recorded as expense. If tolls is not recognised as revenue when stolen, then in accounting, this is a "set-off" of income and expenses. This should be treated according to appropriate accounting standards. For example, you can refer to International Accounting Standard No. 1 for the rules required in "setting off" and "recognition of income " .
2006-11-27 21:07:45 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Both Profits (total revenue) and Losses (an expense) are shown on an Income Statement. Therefore the revenue is shown even if it did not make it to the bank and then the loss is taken away.
2006-11-27 13:55:54 · answer #2 · answered by IBAWhistoname 5 · 1⤊ 0⤋
Stolen anything is not revenue, it would go under the loss/theft section.
2006-11-27 13:44:59 · answer #3 · answered by kny390 6 · 0⤊ 0⤋
I would guess that they would be recognized as revenue and the resulting theft would be recognized as an expense, too.
2006-11-27 13:45:00 · answer #4 · answered by HCH32 2 · 0⤊ 0⤋