Intentionally reporting product sales in the financial statements for the period prior to when they actually occurred is a violation of which generally accepted accounting principle?

Question

Business

Carlee Mccoy

2 November, 11:29

Intentionally reporting product sales in the financial statements for the period prior to when they actually occurred is a violation of which generally accepted accounting principle?

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Answers (1)

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Grayson George · Answer 1

Accounting principle of Revenue recognition

Explanation:

The revenue principle is a principle that states that revenue is recognized as soon as goods are passed to the customer in exchange for valuable consideration and not necessarily when cash is received.

The revenue recognition concept requires that revenues are recognized on the income statement in the period when realized and earned and not when cash is received.