Canonical URL: https://chargezen.com/glossary/revenue-recognition

Revenue

# Revenue recognition

Revenue recognition

The accounting rule for when revenue counts as earned. For prepaid subscriptions, revenue is recognized as each delivery ships, not when the cash arrives.

### Example

A customer prepays $120 for 12 monthly deliveries. The brand recognizes $10 of revenue each month as each order ships.

### Related Terms

[

ARR

Revenue



](https://chargezen.com/glossary/arr-annual-recurring-revenue)

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### More Revenue Terms

[View all Revenue definitions](https://chargezen.com/glossary?category=Revenue)

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