In Real Estate Sales, What Method of Revenue Recognition Must

question 36

Multiple Choice

In real estate sales, what method of revenue recognition must be used if the sale is not consummated?

• A)deposit method
• B)cost recovery method
• C)installment method
• D)completed-contract method

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Definitions:

Ethical implications

The moral consequences or considerations arising from actions, decisions, or policies in personal, professional, or organizational contexts.

Decision entrapment

A situation where individuals continue to invest in a decision despite new evidence suggesting it may have been the wrong choice.

Satisficing

A decision-making strategy that involves selecting an acceptable or adequate solution, rather than the optimal one.

Escalating commitment

The phenomenon where people increase their investment or continue a course of action even if it's not leading to the desired outcome, often to justify prior investments.