The installment method of recognizing revenue is not acceptable for financial reporting if
A)The collectability of the sales price is reasonably assured
B)The installment period is less than 12 months
C)The method is applied to only a portion of the total
D)Collection expenses can be reasonably predicted

Question

Quizplus · Accepted Answer

The installment method is used when collectability is not reasonably assured. If collectability is reasonably assured, revenue should be recognized at the point of sale, not over time.

The Installment Method of Recognizing Revenue Is Not Acceptable for Financial