Multiple Choice
Which of the following activities does not violate the revenue recognition principle?
A) Recording cash received in advance from customers as revenue when the product is not yet shipped
B) Recording cash received in advance from customers as a liability when the product is not yet shipped
C) Recording revenue in December 2013 for units manufactured but not yet sold to customers
D) Not recording interest earned in 2013 until the cash is received in 2014
Correct Answer:
Verified
Correct Answer:
Verified
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