When there is a very high degree of uncertainty about the collectibility of the sales price in a sale, the preferred method of revenue recognition is the
A)cost recovery method
B)installment method
C)deposit method
D)proportional performance method

Question

Quizplus · Accepted Answer

The cost recovery method is preferred when there is significant uncertainty about the collectibility of the sales price, as it recognizes revenue only after all costs have been recovered.

When There Is a Very High Degree of Uncertainty About