A sale should not be recognized as revenue by the seller at time of sale if payment is made by check.

Question

Quizplus · Accepted Answer

A sale can be recognized as revenue by the seller at the time of sale even if payment is made by check, as long as the seller has reasonable assurance of payment and the payment is expected to be collected in the future. The payment method (e.g. check, cash, credit card) does not determine the timing of revenue recognition.

A Sale Should Not Be Recognized as Revenue by the Seller