Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 2 - Conceptual Framework for Financial Reporting - Questions - Page 69: 30b

Answer

Not acceptable.

Work Step by Step

Most records are collectible, or the organization will be bankrupt soon. Subsequently, sales can be recorded when made. Additionally, different organizations recognize sales when made as opposed to when collected, so if accounts for Landowska Co. are to be contrasted with different organizations, they should be kept on a practically identical basis.
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