Which One of the Following Statements Is Not True

question 70

Multiple Choice

Which one of the following statements is not true?

• A)The use of the installment method of recognizing revenue is generally unacceptable.
• B)When the installment method of recognizing revenue is in use, operating expenses are not deferred and recognized in the future.
• C)Deferred gross profit should be disclosed as a current liability on the balance sheet.
• D)A company may use the installment method of revenue recognition for a sales transaction that is not an installment sale.

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Definitions:

Chemosynthetic Bacteria

Microorganisms that obtain energy by converting inorganic molecules to organic matter, independent of sunlight.

Autotrophs

Organisms that produce their own food from inorganic substances, like carbon dioxide and water, typically through photosynthesis.

Heterotrophs

Organisms that obtain energy by consuming other living things, unable to synthesize their own food.

Peptidoglycan

A complex polymer found in the cell walls of bacteria that provides structural support and protection.