The Installment Method of Recognizing Revenue

question 47

Multiple Choice

The installment method of recognizing revenue

• A) should be used only in cases in which no reasonable basis exists for estimating the collectibility of receivables.
• B) is not a generally accepted accounting principle under any circumstances.
• C) should be used for book purposes only if it is used for tax purposes.
• D) is an acceptable alternative accounting principle for a firm that makes installment sales.

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Definitions:

HSLA Steel

High-Strength Low-Alloy Steel, a type of carbon steel that combines strength, weldability, and corrosion resistance at a lower weight.

Dump Box

A dump box is a container mounted on trucks or trailers used for transporting and unloading bulk materials by tipping or lifting.

Frame Stress

The internal forces within a structure's frame, such as in vehicles or buildings, resulting from external loads or pressure.