If a Company Had an Agreement to Deliver Software That

question 69

Multiple Choice

If a company had an agreement to deliver software that requires significant production, modification, or customization, which method of revenue recognition should it use?

• A)percentage-of-completion method
• B)deposit method
• C)installment method
• D)cost recovery method

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Definitions:

Symbol

A character or glyph that is used to represent an object, function, or process, e.g., symbols in mathematics or chemistry.

Reduce

To decrease in size, quantity, or intensity.

Lowest Terms

The simplest form of a fraction, where the numerator and denominator are reduced to their smallest possible values.

Fraction

A mathematical expression representing the division of one whole number by another, not resulting in a whole number.