I saw an interesting question and an incorrect answer. I would like to post the question and incorrect answer then give everyone here the correct answer (bu virtual of my accounting degree and MBA and 30 years of accounting and finance experience).

Question: How much revenue has TPAC earned this month?
Incorrect answer: Zero $
Correct answer is: The $ amount of all purchase orders delivered this month (We know of at least one that is completed and will be delivered in March).

Why I am correct. GAAP (Generally Accepted Accounting Principle) accrual based accounting states that revenue is recognized in the period earned. The "matching principal" states that expenses used to generate revenues are matched to the revenues, therefore expenses incurred in January and February directly related to filling the order will be matched to the revenues they generated in March.

Therefore, if TPAC delivers the purchase order at end of month (lets say march 31, at midnight), then the revenue earned is earned in March. Now they actual cash payment for the delivery may come in April or May, but the Revenue earned will be in the Month of March. Therefore, In March, there will be Revenues and related expenses FROM OPERATIONS. We will first be able to read this for ourselves on the Q2 - 10Q.

Let's be patient. $TPAC LONG.

Edited to add: The Matching Principle and the Revenue Recognition principle are closely related to each other. As far as I know, these principles apply world-wide.