When There Is Not Assurance That the Buyer Can Be

question 43

Multiple Choice

When there is not assurance that the buyer can be expected to satisfy its obligations under a contract, which of the following revenue recognition methods is preferable?

• A)percentage-of-completion method
• B)installment method
• C)deposit method
• D)completed-contract method

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Definitions:

Hand-Mouth Coordination

The ability to move the hands and fingers in a precise manner in coordination with the eyes, often relevant in feeding and object manipulation.

Visual Acuity 20/40

A measure of eyesight indicating that a person can see at 20 feet what a person with normal vision can see at 40 feet.

Internal Abdominal Pain

Pain originating within the abdominal cavity, potentially indicative of various health conditions or diseases.

Abuse

The improper usage or treatment of an entity, often to unfairly or improperly gain benefit; can refer to substances, individuals, or systems.