Lets be hypothetical...
Lets be hypothetical...
Out of context: Reply #3
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- killerqueen0
How ethical is it? Up to you really. It's good enough for GAAP standards, which I'm sure will bring howls from some. But it makes sense....you pay for something only when it generates revenue for you. This is a very foreign concept to designers who have never watched their work actually generate profit outside their invoices, but take retailers.....they'll buy all their inventories on account (they don't pay for their inventories) and they only pay back suppliers after those inventories have been sold. At that point, like i mentioned earlier, they're recorded as an expense against Net Income.