Revenue is recognized prior to the time of sale under the:
A) Specific performance method.
B) Completed contract method.
C) Instalment sales method.
D) Production method.

Question

Quizplus · Accepted Answer

The production method allows for revenue recognition when the production is complete, even if the goods have not yet been sold. This method is used in specific industries where the sale is assured and the cost can be reliably measured, making it an exception to the general principle of recognizing revenue at the point of sale.

Revenue Is Recognized Prior to the Time of Sale Under