If collectibility of the revenue is highly uncertain, an appropriate method that should be used to recognize revenue would be
A)the percentage-of-completion method
B)at the point of sale
C)the proportional performance method
D)the installment method

Question

Quizplus · Accepted Answer

The installment method is the most appropriate for recognizing revenue when collectibility is highly uncertain. This method allows revenue to be recognized as payments are received, rather than at the point of sale or through a percentage-of-completion calculation. This way, the company can avoid overestimating their revenue and potentially having to reverse it later on if payments are not received. It also helps to provide a more accurate picture of the company's financial position.

If Collectibility of the Revenue Is Highly Uncertain, an Appropriate