Chapter 18, Problem 2Q

To determine

GAAP: GAAP (Generally Accepted Accounting Principles) is the standard guidelines, which is commonly used for financial reporting. These guidelines are maintained by the AICPA (American Institute of Certified Public Accountants).

Revenue recognition: Revenue recognition is an accounting principle that determines the process of determining and accounting for revenue. Revenue on any transaction is recognized on the performance of the obligation.

To determine the major criticism of GAAP as regards to revenue recognition.