Fabio Gaertner the Association between Book Tax Form

Instructions and help about Fabio Gaertner The Association Between Book tax

If you're going to understand a company, you  need to understand where its revenue comes from,   and part of this exercise is understanding  how a company accounts for revenue,   and the most important issue related to  the accounting for revenue is Revenue   Recognition. Recognition is just accounting  speak for "putting something on the books."   The two key issues to recognizing revenue  are: How much revenue do we put on the books?   and When do we put that revenue on the books?  So, if you're a CEO or the CFO of a company,   you would prefer to recognize revenue now  instead of later and you would prefer to   recognize more revenue instead of less.  If you can do either of those two things,   you will likely secure an immediate  increase in the value of your company stock.   The way investors value a company is essentially  by taking a company's net income and applying some   multiple to it. More revenue now means a higher  net income now, which, in