Under the installment-sales method, emphasis is placed on collection rather than on sale, and revenue is considered unrealized until the entire sales price has been collected.

Question

Quizplus · Accepted Answer

Under the installment-sales method, revenue and cost of goods sold are recognized at the point of sale, but profit is recognized as cash payments are received, not when the entire sales price has been collected.

Under the Installment-Sales Method, Emphasis Is Placed on Collection Rather