A company with a Dec. 31 year-end calendar year, signs contracts with consumers to perform...
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Accounting
A company with a Dec. 31 year-end calendar year, signs contracts with consumers to perform services. The contracts are usually signed Dec. 1 and are a year in length. Accounting principles require the company to record the revenue for the contract for one month only, the month of December. The remainder of the revenue is recognized on next year's financial statements. However, you have been instructed by upper management to record the entire amount of the contract in December to boost revenues for the current year end. Management receives a bonus for the boosted revenue and subordinates receive recognition in an upcoming performance review. You know that some managers depend on this bonus. What do you do? 50 words Bortings
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