单选题 Which revenue recognition method is used when the payment is assured and revenue is earned as costs are incurred?

A. Installment sales method.
B. Completed contract method.
C. Percentage-of-completion method.

【正确答案】 C

【答案解析】The installment sales method is used when the assurance of payment and estimated bad debts does not exist before cash is collected. Sales revenue and COGS are recognized only when cash is received. The completed contract method is used when a reliable estimate of the total costs does not exist and the amount of revenue cannot be determined until the contract is finished. Revenue is recognized only when the contract is completed and the title is transferred.