A "bill and hold" scheme is most likely to include:
A)Shipment of items to a customer beyond what the customer has ordered.
B)Recording as sales items that the company retains as of year-end.
C)Billing of items that are held by customers for future revenue production purposes.
D)Selling items at substantial discounts near year-end.

Question

Quizplus · Accepted Answer

A "bill and hold" scheme involves recognizing revenue before delivery by billing customers for products that are still held by the company, not yet shipped or delivered, contrary to normal revenue recognition principles.

A "Bill and Hold" Scheme Is Most Likely to Include