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?
A)Significant accounting estimates
B)Fictitious revenue recorded
C)Premature revenue recognized
D)Alteration of cutoff documents

Question

Quizplus · Accepted Answer

"Bill and hold" arrangement involves invoicing a customer for goods that have not yet been shipped, with the understanding that the goods will be shipped at a later date. Recognizing revenue for goods that have not yet been delivered to the customer constitutes premature revenue recognition.

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