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REVENUE RECOGNITION AND CASH RECEIPTS CUTOFF AT FISCAL YEAR ESTATE OF RHODE ISLAND OFFICE OF ACCOUNTS & CONTROL MAY 20171Revenue Recognition in Modified Accrual Accounting Revenues and related accounts

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How to fill out revenue recognition and cash

01

To fill out revenue recognition, follow these steps:

02

Review your sales contracts and identify the performance obligations.

03

Allocate the transaction price to each performance obligation based on their relative standalone selling prices.

04

Recognize revenue when or as the performance obligations are satisfied.

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Recognize any variable consideration or changes in transaction price.

06

To fill out cash reports, follow these steps:

07

Gather the necessary financial documents, including cash receipts and disbursement records.

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Record all cash inflows and outflows accurately and categorize them accordingly.

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Reconcile any discrepancies between the cash balance in the bank statement and the cash balance in your records.

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Prepare a cash flow statement to summarize the sources and uses of cash during a specific period.

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Analyze the cash flow statement to assess the financial health of the business.

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Revenue recognition and cash management are important for various entities and individuals, including:

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