When Accounting for Long-Term Contracts (Other Than Those for Services),all

question 39

Multiple Choice

When accounting for long-term contracts (other than those for services) ,all of the following accounting methods may be acceptable with the exception of

• A)the allocated completion method of accounting.
• B)the completed contract method.
• C)the percentage of completion method.
• D)the modified percentage of completion method.

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Definitions:

Complements

Goods or services that are used together, where the increase in consumption of one leads to an increase in consumption of the other.

Substitutes

Goods or services that can be used in place of one another; an increase in the price of one leads to an increase in demand for the other.

Related Goods

Products or services that are connected by consumer preferences or demand, such as substitutes and complements.

Price Decreases

Occurs when the cost of a good or service drops, often due to factors like increased supply, reduced demand, or competitive market pressures.