DB Inc Sells Goods on a Variety of Terms to Its

question 92

Multiple Choice

DB Inc. sells goods on a variety of terms to its customers, such as some sales on credit, some on consignment, and some on an installment basis. Which of the following revenue recognition methods is most applicable for a company like DB?

• A)Installment sales method, if the credit risk is low.
• B)Installment method, if credit risk is high.
• C)At time of shipment to the consignee, for consignment sales.
• D)At the point of sale, if credit risk is very high.

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Definitions:

Pain

An unpleasant sensory and emotional experience associated with actual or potential tissue damage, or described in terms of such damage.

Anthropodenial

The refusal to acknowledge the human-like traits or behaviors of non-human animals, often stemming from a desire to maintain a perceived distinction between humans and other animals.

Anthropomorphism

Anthropomorphism is the attribution of human traits, emotions, or intentions to non-human entities, including animals, natural phenomena, or objects.

Stereotype Threat

The risk of confirming negative stereotypes about one's group, which can hinder performance in various domains.