For Fixed-Price Construction Contracts That Require More Than One Accounting

question 38

Multiple Choice

For fixed-price construction contracts that require more than one accounting period to complete and for which the costs can be reasonably estimated, revenue should be recognized

• A)during production
• B)at the completion of production
• C)when title to the project is transferred to the buyer
• D)when the cash is received from the buyer

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Definitions:

Reinforcement Material

A substance added to something to make it stronger or more effective.

Section Modulus

A geometric property of a cross-section used in engineering to determine how a beam or structural element will deform under load.

Twistability

The ability of a material or structure to undergo twisting deformation without failing, relevant in engineering and materials science.

Frame Member

Structural components of a vehicle's frame that provide support and rigidity to the vehicle's body, can be longitudinal, lateral, or cross members.