The Installment Method of Revenue Recognition Can Be Used When

question 53

Multiple Choice

The installment method of revenue recognition can be used when cash collectibility is uncertain.The installment method

• A) requires that no income is recognized until all installments are received.
• B) requires that gross profit is recognized as each installment payment is received.
• C) requires that entire cost of the sale be recovered prior to any income being recognized.
• D) allows revenue recognition at the time of the sale.

---

Definitions:

Computer Viruses

Malicious software programs designed to infect and damage computer systems, replicate themselves, and spread to other computers.

Prosperous

Characterized by financial success and good fortune; thriving or flourishing economically.

Rationalizing

The process of providing logical or reasonable explanations for decisions, behaviors, or beliefs, often after the fact.