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In April, Keller Associates carries out a two - week consulting project for Apex Industries. The total bill for the project is $ 2 5
In April, Keller Associates carries out a twoweek consulting project for Apex Industries. The total bill for the project is $ and
payment is due on May Apex sends Keller a check for $ on May Keller deposits the check on May and recognizes all
revenue related to the Apex project as of that date. In this scenario, Keller has
violated GAAP because generally accepted accounting principles require that companies use cashbasis accounting.
not violated GAAP because generally accepted accounting principles require that companies use accrualbasis accounting.
not violated the revenue recognition principle because this principle requires that all revenue related to the Apex project
be recognized in May.
violated the revenue recognition principle because this principle requires that all revenue related to the Apex project be
recognized in April.
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