Earning
process:
Most revenues are the
joint result of many profit-directed activities of the firm and revenue
is often described as being earned gradually and continuously by the whole
of enterprise activities. Earning in this sense is a technical term
that refers to the activities that give rise to the revenue--purchasing,
manufacturing, selling, rendering service, delivering goods, allowing other
entities to use enterprise assets, the occurrence of an event specified
in a contract, and so forth. All of the profit-directed activities
of an enterprise that comprise the process by which revenue is earned may
be called the earning process.
(APB Statement No.
4, paragraph 149)
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