Statement 1: The installment-sales method defers only the gross profit instead of both the sales price and cost of goods sold. Statement 2: Under the cost-recovery method, a company recognizes no revenue or profit until cash payments by the buyer exceed the cost of the merchandise sold. Statement 3: Companies recognize profit under the cost-recovery method only when cash collections exceed the total cost of the goods sold. All statements are false Only one statement is true All statements are true Only one statement is false
35.
Statement 1: The installment-sales method defers only the gross profit instead of both the sales price and cost of goods sold.
Statement 2: Under the cost-recovery method, a company recognizes no revenue or profit until cash payments by the buyer exceed the cost of the merchandise sold.
Statement 3: Companies recognize profit under the cost-recovery method only when cash collections exceed the total cost of the goods sold.
Statement 1: The installment-sales method defers only the gross profit instead of both the sales price and cost of goods sold.
Statement 2: Under the cost-recovery method, a company recognizes no revenue or profit until cash payments by the buyer exceed the cost of the merchandise sold.
Statement 3: Companies recognize profit under the cost-recovery method only when cash collections exceed the total cost of the goods sold.
All statements are false
Only one statement is true
All statements are true
Only one statement is false
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