Company management is often under pressure to increase revenue and/or net income.One approach is to use a "bill and hold" arrangement.This is an example of which of the following?

Question

Quizplus · Accepted Answer

"Bill and hold" arrangement involves recognizing revenue before the customer takes possession of the goods. This is a potential violation of revenue recognition principles, as revenue should only be recognized when delivery has been made or services have been provided. Therefore, this arrangement could result in premature revenue recognition.

Company Management Is Often Under Pressure to Increase Revenue And/or