When there is not assurance that the buyer can be expected to satisfy its obligations under a contract, which of the following revenue recognition methods is preferable?
A)percentage-of-completion method
B)installment method
C)deposit method
D)completed-contract method

Question

Quizplus · Accepted Answer

The completed-contract method is preferable when there is not assurance that the buyer can be expected to satisfy its obligations under a contract because it recognizes revenue only when the contract is complete and the buyer has fulfilled its obligations.

When There Is Not Assurance That the Buyer Can Be