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For the following situations choose the principle, assumption, or concept that justifies or explains what occurred. A landscaper received a customer's order and cash prepayment
For the following situations choose the principle, assumption, or concept that justifies or explains what occurred.
A landscaper received a customer's order and cash prepayment to install sod at a house that would not be ready for installation until March of next year. The owner should record the revenue from the customer order in March of next year, not in December of this year.
Revenue recognition principle
Expense recognition principle
Separate entity concept
Cost principle
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