Explain why, under accrual accounting, revenue isn't always recognized when cash is received.
Answer to relevant QuestionsDo you think it's good or bad that entities have flexibility in choosing when to recognize revenue? Explain.Explain why recognizing revenue and expenses in different ways has no effect on the underlying economic activity of an entity.Does it matter how and when a company recognizes its revenue? Explain.What does it mean when accountants refer to recognizing revenue when a "critical event" occurs?Victory Health Club Inc. allows people to join its health and fitness club by either buying a lifetime membership or paying annually. A lifetime membership entitles the member to use club facilities for the member's life. ...
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