Which profit recognition method is the most conservative?
A)collection (receipt of cash)method
B)percentage of completion method
C)instalment method
D)sales method

Name: Which profit recognition method is the most conservative? A)collection (receipt of cash)method B)percentage of completion method C)instalment method D)sales method
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Question

Quizplus · Accepted Answer

The collection (receipt of cash) method is the most conservative because it recognizes revenue only when cash is received.

Which Profit Recognition Method Is the Most Conservative