When using the installment sales method, (a) total revenues & costs are recogniz

Question

When using the installment sales method, (a) total revenues & costs are recognized at the point of sale, but gross profit is deferred in proportion to the cash that is uncollected from the sale (b) gross profit is recognized only after the amount of cash collected exceeds the cost of the item sold (c) revenue, costs and gross profit are recognized proportionally as the cash is received from the sale of product (d) gross profit is deferred until all cash is received, but revenues and costs are recognized in proportion to the cash collected from the sale

Explanation / Answer

(a) total revenues & costs are recognized at the point of sale, but gross profit is deferred in proportion to the cash that is uncollected from the sale

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