Evaluate the extent to which Wal-Mart's previous revenue policy was consistent with the revenue recognition principle.

Wal-Mart's previous revenue policy was inconsistent with the revenue recognition principle.  It used to recognize revenue when performance obligations have not been met.

Explanation:

In response to SAB 101 issued by the Stock Exchange Commission in 1999, Wal-Mart changed its revenue recognition policy for layaway transactions.  Layaway transactions are those in which Wal-Mart sets aside merchandise for customers who make partial payment.  Before SAB 101, Wal-Mart recognized all revenue on the sale at the-time of the layaway. After the change, Wal-Mart does not recognize revenue until customers satisfy all payment obligations and take possession of the merchandise.

answerthe above statement is (true);

options ?

explanation: