Which one of the following is violated when a company recognizes revenue upon the receipt of cash from a customer who has paid in advance for services?

Question

Quizplus · Accepted Answer

Revenue recognition criteria are violated because revenue should be recognized when it is earned, not necessarily when cash is received. Recognizing revenue upon receipt of cash from a customer who has paid in advance does not align with the accrual accounting principle.

Which One of the Following Is Violated When a Company