Question

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?a. Periodicity
b. Matching
c. Historical cost
d. Revenue recognition

Answer 1

Answer:

d. Revenue recognition

Explanation:

The principle of revenue recognition occurs when the revenue is recognized or earned whether cash is obtained or not and it also meets the accounting accrual basis. Realizable here implies that the customer receives the product but the payment was made afterward.

Since the given scenario reflects the violation of the revenue recognition principle.