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Do you think recognizing revenue too early had anything to do with the gyms closing down? If the company showed a pre-paid yearly gym membership

Do you think recognizing revenue too early had anything to do with the gyms closing down? If the company showed a pre-paid yearly gym membership as income for the first month of the year, there would be no income showing for the rest of the year. Not only would that distort the financial reports, but how would they pay their staff the rest of the year?

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