Question

10. Arun receives an advance from a
customer which is not taken as income or
sales by him. Which accounting
assumption is being violated by him ?? *
(1 Point)
Enter your answer​

Answer 1

Answer:

So, when we receive Advance from customers , it is basically the amount provided by customers early but the actual revenue has not been earned yet. This is based on revenue recognition principle and do cover prudence concept and so the same is not recorded as sales or Income.

Answer 2

Explanation:

Hey guys here is the attached answer