The installment sales method recognizes revenue and income proportionately as cash is collected.

Question

Quizplus · Accepted Answer

The installment sales method recognizes revenue and income proportionately as cash is collected. This means that the revenue is recognized over time, rather than all at once, which is appropriate for situations where payment for goods or services is received in multiple installments over a period of time. Therefore, the statement is true.

The Installment Sales Method Recognizes Revenue and Income Proportionately as Cash