Creative Ads Inc.,provides $5 million of advertising development services on account to a large,existing customer who has previously purchased similar amounts of services and has always paid on time.Creative Ads Inc.,then decides to credit $5 million to revenue.This decision:
A) violates the condition that risks and rewards be passed or the earnings process be substantially complete.
B) violates the condition that measurability be reasonably certain.
C) violates the condition that collectability be reasonably assured.
D) does not violate any of the above conditions of the revenue principle.
Correct Answer:
Verified
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