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What will happen in case the company receives payments of customers before bringing an assistance or getting a product? Fundamentally acknowledged bookkeeping beliefs (GAAP), formed and you will enforced from the the Bonds and you can Change Fee (SEC) and you can Financial Bookkeeping Criteria Board (FASB), want businesses in order to list prepayments as the unearned funds.
This new SEC has created multiple financial reporting requirements (predicated on GAAP) you to personal enterprises have to see and you will adhere to, to identify revenue. Failure to get to know some of these...