Which of the Following Is an Acceptable Revenue-Recognition Method

question 102

Multiple Choice

Which of the following is an acceptable revenue-recognition method?

• A)At time of shipment, if warranty uncertainty is not reliably measurable.
• B)At time of shipment to the consignee, for consignment sales.
• C)Installment method, if credit risk is high.
• D)At the point of sale, if credit risk is very high.

---

Definitions:

Movie Tickets

Small documents or electronic codes that grant the holder access to view a film in a cinema.

Economic Upturn

A period of economic improvement characterized by higher levels of production, employment, and income.

Consumer Income

The total earnings of a consumer from various sources before taxes, crucial in determining spending and saving behaviors.

Normal Good

A good for which demand increases as consumer income rises.