If revenue is not recognized at the time of sale, which of the following accounts may be affected at the time of sale? $\begin{array}{lll}
&\text { Accounts } & \text { Deferred } \
&\text { Receivable } & \text { GrossProfit }\
\text {I.}&\text { No } & \text { No } \
\text {II.}&\text { Yes } & \text { Yes } \
\text {III.}&\text { No } & \text { Yes } \
\text {IV.}&\text { Yes } & \text { No }
\end{array}$

A)I
B)II
C)III
D)IV

Question

If revenue is not recognized at the time of sale, which of the following accounts may be affected at the time of sale? $\begin{array}{lll}
&\text { Accounts } & \text { Deferred } \
&\text { Receivable } & \text { GrossProfit }\ 
\text {I.}&\text { No } & \text { No } \
\text {II.}&\text { Yes } & \text { Yes } \
\text {III.}&\text { No } & \text { Yes } \
\text {IV.}&\text { Yes } & \text { No }
\end{array}$

A)I
B)II
C)III
D)IV

Quizplus · Accepted Answer

Only accounts related to the transaction such as accounts receivable and sales revenue are affected at the time of sale. Options I, III, and IV are not relevant as they do not relate to the sale transaction.

If Revenue Is Not Recognized at the Time of Sale