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The revenue recognition principle: a) Companies should account for the revenue when the obligations are partly fulfilled. b) The revenue is accrued when it is
The revenue recognition principle:
a) Companies should account for the revenue when the obligations are partly fulfilled.
b) The revenue is accrued when it is probable that the payment will not be received.
c) Sales are accounted as soon as the sales contract is approved and signed by both parties.
d) Companies account for the revenue when they transfer goods or services to the customer.
e) Revenue is accounted independently from when the cash is paid.
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