Which of the following would not be an application of the revenue recognition or expense recognition principle? A)Recording accrued salaries and wages expense. B)Recording accrued interest revenue. C)Recording the collection of an advance customer payment as revenue. D)Recording prepaid expense adjustments.

Question

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Recording the collection of an advance customer payment as revenue would not be an application of the revenue recognition principle, as revenue should only be recognized when it is earned, not when cash is received in advance.

Which of the Following Would not Be an Application of the Revenue