Using certain standardized and generally accepted accounting principles, the accountant prepares financial statements that recognize revenue at the point of sale and expenses when incurred.

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This statement is true. The accountant follows accounting principles such as the accrual basis of accounting to recognize revenue and expenses in the appropriate period, regardless of when cash is received or paid. Revenue is recognized at the point of sale, which is when the performance obligation is satisfied and the customer has obtained control of the product or service. Expenses are recognized when they are incurred, which is when the goods or services are received or the obligation is owed. Together, these principles ensure accurate and informative financial statements.

Using Certain Standardized and Generally Accepted Accounting Principles, the Accountant