Question: a) Explain how revenues are recognized under GAAP (Generally Accepted Accounting Principles) and the rationale for that treatment. Provide an example of revenue recognition. b)

a) Explain how revenues are recognized under GAAP (Generally Accepted Accounting Principles) and the rationale for that treatment. Provide an example of revenue recognition.

b) Describe the role of the external auditors for publicly traded companies in the accounting communication process.

c) How is net income in the income statement different than cash flow from operating activities in the cash flow statement?

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