Under GAAP, Revenue Can Never Be Recognized Before a Company

question 32

True/False

Under GAAP, revenue can never be recognized before a company receives cash from the customer.

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Definitions:

Intermittent Reinforcement

A conditioning schedule in which a response is reinforced only some of the time, leading to more resilient behavior than continuous reinforcement.

Incentive

A factor, often external, that motivates or encourages an individual to act in a certain way.

Goal Object

The target or endpoint of an individual's efforts or ambitions.

Partial Reinforcement

A conditioning schedule in which a reward is not provided every time the desired response is exhibited, making the response more resistant to extinction.