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

Question

Quizplus · Accepted Answer

The accountant is following the accrual principle, which states that revenue should be recognized when it is earned, regardless of when cash is received. This is a generally accepted accounting principle. Choice B, conservatism constraint, is not relevant to the given scenario. Choice C, violating generally accepted accounting principles, is not applicable since the accountant is following a generally accepted accounting principle. Choice D, consistency principle, is also not applicable to the given scenario.

An Accountant Who Records Revenue When a Credit Sale Is