Since accrual accounting follows the revenue principle and the expense recognition principle,all ethical challenges are avoided.

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While accrual accounting does follow the revenue principle and the expense recognition principle, ethical challenges can still arise. For example, a company could manipulate its financial statements by intentionally misrepresenting revenues or expenses, or by engaging in fraudulent activities. Additionally, even if a company follows these principles correctly, there may still be ethical considerations related to how they report information or handle financial transactions.

Since Accrual Accounting Follows the Revenue Principle and the Expense