Under what condition is it possible to recognize revenue using the production method?
A)When the production process takes a reasonably short period of time.
B)When the collection of the receivable is reasonably uncertain.
C)When the sale must be reported as a credit sale.
D)When market value of the sale is reasonably certain.

Question

Quizplus · Accepted Answer

Revenue can be recognized using the production method when the market value of the sale is reasonably certain. This is because the production method recognizes revenue based on the progress made towards completion of the production process, and the estimated selling price of the product. If the market value of the sale is reasonably certain, then the estimated selling price can be determined with a reasonable degree of accuracy, allowing revenue to be recognized using the production method.

Under What Condition Is It Possible to Recognize Revenue Using