CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Under the installment method, revenue is recognized when the customer ______

A. orders the merchandise.
B. receives the merchandise.
C. receives the bill.
D. makes a cash payment.
Correct Answer: D

If there is uncertainty about the probability of the collection of the revenues, then the installment method is used, which recognizes revenue as the cash is received, using the gross profit percentage.

User Contributed Comments 0

You need to log in first to add your comment.