Final answer:
The statement is false; a company can recognize revenue at the point of sale, even with a return policy, if it can estimate returns and has a transaction history.
Step-by-step explanation:
The claim that a company should not recognize revenue until the sale is collected when there is a right of return is false. Revenue recognition should follow the accounting standards such as the International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles (GAAP). According to these standards, a company can recognize revenue at the point of sale even if there is a right of return, provided that the company can reasonably estimate future returns and has a history of similar transactions.
In a proprietary colony, the Proprietors actually have numerous responsibilities including developing the colony, recruiting settlers, and maintaining control over the land and its resources. The Proprietors also had the power to make laws and collect taxes from the colonists.