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:

Telecommunications Technologies

Tools and devices used to transmit information over distances, such as telephones, the internet, and satellite systems.

Digitized Offerings

Products or services that are converted into digital form to be accessed or purchased online.

Extranet

An extranet is a private network that allows controlled access to partners, vendors, and suppliers or an authorized set of users outside the company to access specific parts of an organization's information or operations.

Intranet

A private network accessible only to an organization's staff, often containing company information and tools for collaboration and communication.