Accountancy, asked by madansuthar4170, 1 year ago

Advance recieved from a customer is not taken as income or Sales
Accounting Concept followed
Why is it Revenue Recognition and not Prudence concept

Answers

Answered by Anonymous
3
Revenue Recognition concept deals with recognition of INCOME and EXPENDITURE.
Prudence concept deals with accounting for PROFIT or LOSSES.
Since, advance is an income to us, it is recorded under revenue recognition.
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