CH 1.6 Flashcards
1
Q
the installment method is only acceptable when…
A
receivables are collectible over an extended period and no reasonable basis exists for estimating the degree of collectibility
2
Q
Revenue recognition principle states…
A
revenues and gains should be recognized when1. realized or realizable2. earned
3
Q
Cost recovery method states…
A
same as installment method, but no profit is recognized until collections exceed the cost of the item.
4
Q
cost recovery revenue entry
A
cash less cost is booked as revenue
5
Q
Deposit method revenue entry
A
DB CashCR Deposit Liability
