An accountant who records revenue when a credit sale is made rather than waiting for the receipt of cash from the customer is
A)violating generally accepted accounting principles.
B)following the accrual principle.
C)following the conservatism constraint.
D)following the consistency principle.

Question

Quizplus · Accepted Answer

The accountant is following the accrual principle, which recognizes revenue when it is earned, regardless of when the cash is received. This is in accordance with generally accepted accounting principles. The conservatism constraint relates to the principle of being cautious in recognizing losses or expenses, while the consistency principle states that accounting methods should be consistent from one period to another.

An Accountant Who Records Revenue When a Credit Sale Is