would you still be ethical if you accrue revenue and deffer expenses?

Answer 1

To be ethical, you should accrue revenue when you have earned it. That means when delivering the service or product as agreed.

Expenses should also be accrued when incurred, usually when you receive the invoice or when specified by contract.

The point of bookkeeping is to produce an accurate and faithful record of what the business has done and what it's current status is. It is unethical to do anything that attempts to portray things in any other way.

I'm a part-time bookkeeper, and I've had to refuse to record transactions a certain way because it was fraudulent or unethical, because to do so the way the boss wanted to would not produce an accurate record and status of the company. This was a talk I had with the boss when he hired me, and he needed to be reminded of it. Usually wording it like, "Oh, you want me to record a fraudulent transaction" will do the trick.

Answer 2

Accrue Revenue