From a lender's perspective, which of the following manufacturer's income statements should have the most reliable reported net income?
Company B recognizes revenue at the time the contract is signed,
and expenses when cash is
actually paid out.
Company D recognizes revenue and related expenses as each shipment is made and accepted.
Company A recognizes revenue and expenses at the time a contract is signed.
Company C recognizes all revenue at the time a contract is completed, and each related expense
when cash is actually paid out.