Over the life of a particular account receivable, the same total amount of gross profit is recognized under the installment method and the cost recovery method.

Question

Quizplus · Accepted Answer

The installment method and cost recovery method both result in the recognition of the same total amount of gross profit over the life of an account receivable. However, the timing and pattern of recognition may differ between the two methods.

Over the Life of a Particular Account Receivable, the Same