11. From the following alternatives, select the correct one: *

a) Under the cost recovery method, profit is recognized when collection is made regardless of cost recovery.

b) Due to the capacity for postponing the recognition of taxable income & the payment of income taxes, the accrual method of gross profit recognition is acceptable under the income tax regulation.

c) An over allowance is the shortage of the current fair value of the used properly over trade-in allowance.

d) If there is no reasonable basis for estimating the degree of collectibles and collection of installment receivables is not reasonably assumed, accountants are recommended to use the accrual method of gross profit recognition.