A Company That Ships Product to Its Customers in January

question 59

True/False

A company that ships product to its customers in January 20X2 but records them as revenue in December 20X1 has not violated the revenue principle because they were manufactured and ready for sale before the accounting year end.

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Definitions:

Rubber Stamps

Implements crafted from rubber that imprint designs or text on various materials, commonly used in offices for endorsing documents.

Letters

Written or printed communication addressed to a person or organization, typically consisting of a greeting, body, closing, and signature.

Rubber Stamps

Tools used to apply inked designs or impressions, metaphorically referring to giving approval without careful consideration.

Business Communications

The sharing of information between people within and outside an organization in a professional context.