In real estate sales, what method of revenue recognition must be used if the sale is not consummated?
A)deposit method
B)cost recovery method
C)installment method
D)completed-contract method

Question

Quizplus · Accepted Answer

The deposit method must be used for revenue recognition if the sale is not consummated. This method recognizes that the transaction has not been completed, and therefore, revenue cannot be fully recognized. Instead, any payments received are treated as deposits.

In Real Estate Sales, What Method of Revenue Recognition Must