Asked by
Patrick Moneva
on Oct 28, 2024Verified
If collectibility of the revenue is highly uncertain, an appropriate method that should be used to recognize revenue would be
A) the percentage-of-completion method
B) at the point of sale
C) the proportional performance method
D) the installment method
Revenue Recognition
The accounting principle that deals with the conditions under which revenue is recognized and recorded on the financial statements.
Installment Method
An accounting method used to recognize revenue and expenses on long-term contracts and other sales where payment is received in installments.
- Clarify the criteria for revenue realization.
Verified Answer
LM
Learning Objectives
- Clarify the criteria for revenue realization.
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