Waiting until January 1 to ship an order and recognizing its revenue that was ready on December 29 is an example of income shifting.

Name: Waiting until January 1 to ship an order and recognizing its revenue that was ready on December 29 is an example of income shifting.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is an example of income shifting because it involves deliberately altering the timing of revenue recognition (from one accounting period to another) to achieve financial or tax advantages.

Waiting Until January 1 to Ship an Order and Recognizing