Which of the Following Is Not an Element Identified by the AICPA

question 61

Multiple Choice

Which of the following is not an element identified by the AICPA as being necessary in order to use percentage-of-completion accounting?

• A) The construction period can be reasonably estimated.
• B) The buyer can be expected to satisfy obligations under the contract.
• C) Dependable estimates can be made of the extent of progress toward completion.
• D) Dependable estimates can be made of contract costs.

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Definitions:

Patent Application

The process by which an inventor or a legal representative seeks exclusive rights for an invention from the government.

Production Technology

Relates to the methods, processes, and equipment used in the production of goods and services, often focusing on efficiency and innovation.

Athletic Shoes

Footwear specifically designed for sports or physical activities, offering support, durability, and comfort to improve performance.

Equilibrium

The condition that exists in a market when the plans of buyers match those of sellers, so quantity demanded equals quantity supplied and the market clears