The Cost Recovery Method

Multiple Choice

The cost recovery method

A) matches the costs of generating revenue with cash receipts until the seller recovers all its costs.
B) is a method by which the seller sets expenses equal to revenue in each period until it recovers all its costs.
C) 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.
D) is a method by which the seller reports revenue without any matching expenses in its income statement after cumulative cash receipts equal total costs.
E) all of the above.