Chapter 3

How can two months both look right yet be wrong?

Tháng nào cũng trông đúng, sao cả hai đều sai?

The chapter's question

Does this month's expenses include anything that actually belongs to last month?

Big idea

Expenses booked in the wrong period make both months lie, and neither looks wrong.

In this chapter

  1. Part 3.1

    Accrued but Not Invoiced

    How do I record something consumed but not yet invoiced?

  2. Part 3.2

    Prepaid Items

    How is an annual payment spread across the year?

  3. Part 3.3

    When Revenue Is Recognised

    Is money received in advance being booked as revenue immediately?

  4. Part 3.4

    Signs of Cut-Off Errors

    Which number jumped unusually between the two months?

The reading for this chapter is inside Conan School

This chapter has 4 readings, with case stories and exercises. Chapter 1 of Books That Tell the Truth is free to read right here.

Read in Conan School

Chapters of Books That Tell the Truth

  1. 1.What good are accurate numbers that arrive late?
  2. 2.Is a tiny mismatch really worth chasing down?
  3. 3.How can two months both look right yet be wrong?
  4. 4.Who really decides how good the books are?
  5. 5.Can anyone trust books that everyone can edit?