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A car dealer negotiates a supplier agreement with a large company, detailing the minimum number of vehicles to be bought over the next three years,
A car dealer negotiates a supplier agreement with a large company, detailing the minimum number of vehicles to be bought over the next three years, the price for each model of vehicle that is available from the car dealer and the price for maintaining (or servicing) the vehicles. After both parties sign the agreement, the car dealer's accountant recognises revenue for vehicles that will likely be sold in the next year. However, the accountant believes that the expenses cannot be recognised until they are incurred at a later time. Which accounting principle has been violated by this accounting practice? O a. Relevance O b. None of the options is correct - No accounting principle has been violated Oc. Verifiability O d. Expense recognition O e. Revenue recognition
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