A financing component is accounted for separately in a sales contract if delivery occurs in advance of payment or payment occurs in advance of delivery by more than ________.
A) six months
B) one year
C) two years
D) three years

Question

Quizplus · Accepted Answer

A financing component is accounted for separately if the timing difference between delivery and payment is more than one year, as per accounting standards.

A Financing Component Is Accounted for Separately in a Sales