landscaping company that completes services at a job for a fee of $1,200. Using the recognition principle, the revenue can be immediately recognized upon the completion of the job, even if it does not receive payment from the customer for several weeks. Another example could be that the company receives a deposit of $1000 in advance to service a customer on a six month basis. In this scenario, the service should recognize an increment of the advanced payment in each of the six months covered by the…
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