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Which of the following is false with regard to the cost recovery method? A. It is a method by which the seller reports revenue without

Which of the following is false with regard to the cost recovery method?

A.

It is a method by which the seller reports revenue without any matching expenses in its income statement before cumulative cash receipts equal total costs.

B.

It is a method by which the seller sets expenses equal to revenue in each period until it recovers all its costs.

C.

None of the above

D.

It matches the costs of generating revenue with cash receipts until the seller recovers all its costs.

E.

It is a method by which the seller does not recognize gross margin in income until it has recovered all of the costs of the sale.

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