Which one of the following statements is false?
A) The use of the installment method of recognizing revenue is generally unacceptable.
B) When the installment method of recognizing revenue is in use, operating expenses are not deferred and recognized in the future.
C) Deferred gross profit should be disclosed as a current liability on the balance sheet.
D) A company may use the installment method of revenue recognition for a sales transaction that is not an installment sale.

Question

Quizplus · Accepted Answer

Deferred gross profit is typically not classified as a current liability; it is usually presented as a contra asset or deferred revenue on the balance sheet.

Which One of the Following Statements Is False