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Explain why Ford would be violating U.S. GAAP if it recognized all related revenue at the...

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Accounting

Explain why Ford would be violating U.S. GAAP if itrecognized all related revenue at the time cash was received fromcustomers, rather than recording any as deferred

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IN THIS CASE OF FORD THEY ARE FOLLOWING CASH BASIS OF ACCOUNTING CASH BASIS ACCOUNTING IS AN ACCOUNTING SYSTEM THAT RECOGNIZES AND RECORDS INCOME AND EXPENSES AS THEY ARE RECEIVEDPAID IN CASH GAAP DICTATES THAT BUSINESSES CANNOT USE THIS SYSTEM OF ACCOUNTING INSTEAD THEY MUST USE THE ACCRUAL BASIS OF ACCOUNTING THAT RECOGNIZES REVENUES AND EXPENSES WHEN THEY ARE    See Answer
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