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Does the following situation violate any GAAP or concepts? If so, which one?


Harry Smith owns a travel tour service. Customers make a deposit of one-half the tour price at the time they book reservations. The balance is due 60 days prior to departure. Partial refunds are provided, depending on the date of cancellation. At the time deposits are received, Smith records them as revenue. Refunds are treated as expenses at the time they are made.
Does this violate any of these GAAP: 1) Historical cost basis 2) revenue recognition 3) matching principle 4) full disclosure

538 day(s) ago

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LoveDukeDog 		You need to answer this one by yourself, if you are an accounting student!

Posted 538 days ago

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