The Rainbow House Painting Company has been contracted to strip,repair,prime,and paint a house for $3,600 to be paid in instalments as phases of the work are completed.The company has not started painting and has only received one payment.The company decides to record $3,600 as revenue.This decision violates the:
A) the condition of the revenue principle which states that regulatory approval be acquired.
B) the condition of the revenue principle that measurability is reasonably certain.
C) the condition of the revenue principle that collectability is reasonably assured.
D) the condition of the revenue principle,that the company has fulfilled its obligation to the customer of providing the service to the customer.
Correct Answer:
Verified
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