sales
Definition
Total dollar amount collected for goods and services provided. While payment is not necessary for recognition of sales on company financial statements, there are strict accounting guidelines stating when sales can be recognized. The basic principle is that a sale can only be recognized when the transaction is already realized, or can be quite easily realized. This means that the company should have already received a payment, or the chances of receiving a payment is high. In addition, delivery of the good or service should have taken place for the sale to be recognized.
Use sales in a sentence
“ You need to do your best to always increase your sales so that you know you will be doing what is most profitable. ”
“ John had done a terrific job with his sales numbers and was hoping to receive a nice bonus. He worked the phones to try and reach more customers and expand his territory. ”
“ My company decided to lead off our earnings report with the number showing our sales for the month, since that showed how much money we expected to receive now and in the next few months. ”
