When Comparing the Percentage-Of-Completion and Completed-Contract Methods of Accounting for Long-Term

question 67

Multiple Choice

When comparing the percentage-of-completion and completed-contract methods of accounting for long-term construction contracts,both methods will report the same

• A) balances each period in the Progress Billings account.
• B) expense for cost of construction each year.
• C) amount of income in the year of completion.
• D) inventory carrying value each year during the construction period.

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Definitions:

Determined

Possessing a strong motivation or resolve; having a firm decision to do something.

Scientifically Studied

A research approach that utilizes systematic and empirical methods to investigate phenomena, ensuring reliability and validity of findings.

Circular Reasoning

A logical fallacy in which the conclusion of an argument is used as a premise of the same argument; essentially, the reasoning goes in a circle without proving anything.

Radical Behaviorism

A philosophy of psychology based on the premise that all behaviors are a result of the interaction between the individual and their environment, emphasizing observable behaviors over internal factors.