A method of revenue recognition after the time of sale is percentage-of-completion proportional performance cost recovery point of sale Realization of revenue occurs when the item is formally recorded and reported in the financial statements a company sells goods or provides a service the actual exchange of noncash resources into cash when transaction is both realized and realizable. To be recognized as revenue, an item must meet the definition of revenue meet the definition of revenue and be reliably measured in monetary terms be realized be earned A revenue recognition method that recognizes revenue before the time of sale is percentage-of-completion installment cost recovery point of sale Depreciation is an example of which expense recognition principle? association of cause and effect systematic and rational allocation cost recovery immediate recognition How should the gain or loss that is considered infrequent but not unusual in nature be disclosed? separately in the income statement immediately after income from continuing operations on a net-of-tax basis in the income statement immediately after income from continuing operations as an extraordinary item separately in the income statement as a component of income from continuing operations How should a material, infrequent event not meeting the criteria for an extraordinary item be disclosed in the income statement? shown as a separate item in income from continuing operations and supplemented by a footnote if deemed appropriate shown in income from continuing operations but not shown as a separate item shown after income from continuing operations but before extraordinary items shown after extraordinary items net of income tax but before net income