Figure · FIG:foundational/four-events-four-dates

Record the activity and the later cash event

A comparison of four transactions in which cash, performance, and the document fall on different dates.

Updated Sep 6, 2026 Review due Nov 9, 2026
Assume control passes on delivery and completed work qualifies for revenue. Record each activity and cash event once; an invoice alone does not create another purchase or expense.
Detailed visual description

Four standalone timing examples assume qualifying recognition and control on delivery. Supplies received March 26 are recorded then; payment May 3 settles the payable. Installation completed and billed April 8 creates revenue and a receivable; May 6 collection settles it. A $4,000 April 1 advance creates a liability; May work earns the revenue. March electricity creates expense and a payable; April 20 payment settles it. Every row includes separate accounting for the activity and cash event.

Review apparatus

Visual provenance and review

Technique
deterministic svg
Role
explanatory
Review state
candidate
Rights
CC0-1.0 · Project-authored teaching diagram

Review notes

  • Dates are internally consistent with the invoice figure and with the lesson prose.