The installment method of recognizing revenue
a. should be used only in cases in which no reasonable basis exists for estimating the collectibility of receivables.
b. is not a generally accepted accounting principle under any circumstances.
c. should be used for book purposes only if it is used for tax purposes.
d. is an acceptable alternative accounting principle for a firm that makes installment sales.
A
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Honig Corporation had the following shares of stock outstanding on December 31, 2010: Common stock, $50 par value, 100,000 shares outstanding Preferred stock, 8 percent, $100 par value, cumulative, 10,000 shares outstanding Dividends were in arrears for 2008 and 2009 . On December 31, 2010, total cash dividends of $400,000 were declared. The total amounts payable to preferred stockholders and
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