If the Percentage-Of-Completion Method Is Used, What Is the Basis

question 20

Multiple Choice

If the percentage-of-completion method is used, what is the basis for determining the gross profit to be recognized in the second year of a three-year contract?

• A) Cumulative actual costs incurred only
• B) Incremental cost for the second year only
• C) Cumulative actual costs and estimated costs to complete
• D) No gross profit would be recognized in year 2

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Definitions:

African Americans

Individuals of African descent living in the United States, recognized for their rich cultural heritage and history of perseverance and achievement amidst societal challenges.

Racism

The act of prejudice, unequal treatment, or aggression against a person of a different racial group, due to the belief in the superiority of one's own race.

Racial Identities

The sense of self and belonging that individuals associate with a particular racial group.

African American

Refers to citizens or residents of the United States who have total or partial ancestry from any of the native populations of Sub-Saharan Africa.