Multiple Choice
Which of the following activities does not violate the revenue recognition principle?
A) Recording revenue in December 2011 for units manufactured but not yet sold to customers
B) Recording cash received in advance from customers as revenue when the product is not yet shipped
C) Not recording interest earned in 2011 until the cash is received in 2012
D) Recording cash received in advance from customers as a liability when the product is not yet shipped
Correct Answer:
Verified
Correct Answer:
Verified
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