Under the installment sales method, a. Gross profit is deferred proportionately to cash uncollected from sale of the product, but total revenue and costs are recognized at the point of sale. b. Revenues and costs are recognized proportionately to the cash received from the sale of the product, but gross profit is deferred until all cash is received. c. Revenue, costs, and gross profit are recognized proportionately to the cash that is received from the sale of the product. d. Gross profit is not recognized until the amount of cash received exceeds the cost of the item sold.
Under the installment sales method, a. Gross profit is deferred proportionately to cash uncollected from sale of the product, but total revenue and costs are recognized at the point of sale. b. Revenues and costs are recognized proportionately to the cash received from the sale of the product, but gross profit is deferred until all cash is received. c. Revenue, costs, and gross profit are recognized proportionately to the cash that is received from the sale of the product. d. Gross profit is not recognized until the amount of cash received exceeds the cost of the item sold.
Business/Professional Ethics Directors/Executives/Acct
8th Edition
ISBN:9781337485913
Author:BROOKS
Publisher:BROOKS
Chapter5: Corporate Ethical Governance & Accountabililty
Section: Chapter Questions
Problem 19.1EC
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Under the installment sales method,
a. Gross profit is deferred proportionately to cash uncollected from sale of the product, but total revenue and costs are recognized at the point of sale.
b. Revenues and costs are recognized proportionately to the cash received from the sale of the product, but gross profit is deferred until all cash is received.
c. Revenue, costs, and gross profit are recognized proportionately to the cash that is received from the sale of the product.
d. Gross profit is not recognized until the amount of cash received exceeds the cost of the item sold.
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