Recognizing income after the time of sale is
A)never appropriate.
B)always appropriate.
C)never in accordance with U.S.GAAP.
D)appropriate for some specific circumstances.
E)never in accordance with IFRS.

Question

Quizplus · Accepted Answer

Recognizing income after the time of sale may be appropriate for some specific circumstances such as when the seller has an obligation to the buyer, such as a warranty or a return policy. This is in accordance with U.S. GAAP and IFRS, which both allow for revenue recognition to be deferred in certain situations. Therefore, options A, B, and E are incorrect. Option C is incorrect as it is a blanket statement that is not accurate.

Recognizing Income After the Time of Sale Is