From the provided options, the indicator where the recognition of sales revenue cannot be done over a period of time is the scenario where the seller anticipates the fulfillment of the contract as he has a prominent experience with the consumer.
The third option is the correct answer.
Sales revenue is the amount that has been obtained by the company either in cash or credit depending on the company's motive for selling.
The remaining options apart from the third option signify the recognition of revenue from sales when it is earned as per the concept of accrual accounting and not when the cash is actually received from the customers.
Question's missing part:
The options are given as follows:
1) The asset being constructed has no alternative use to the seller, and the seller has the right to payment for progress to date even if the customer cancels the contract.
2) The seller is providing continuous effort to the buyer.
3) The seller has significant experience with the customer and anticipates the fulfillment of the contract.
4) The customer owns the asset as the seller is constructing it.
Therefore, the explanation in the third option describes the indicator as not recognizing the revenue on time.
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