A Company Uses the Percentage-Of-Completion Method to Account for a Four-Year

question 2

Multiple Choice

A company uses the percentage-of-completion method to account for a four-year construction contract.Progress billings sent in the second year that were collected in the third year would

• A) be included in the calculation of the income recognized in the second year.
• B) be included in the calculation of the income recognized in the third year.
• C) be included in the calculation of the income recognized in the fourth year.
• D) not be included in the calculation of the income recognized in any year.

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Definitions:

Express Easement

A right granted by a landowner for the use of a portion of their property for a specific purpose, explicitly stated in writing.

Common Elements

are the parts of a condominium or co-operative property that are shared among all owners, such as lobbies, gyms, and pools.

Right of Lien

The legal right to retain possession of property belonging to another person until a debt owed by that person is discharged.

Registry System

A system for recording and tracking legal rights and interests in property, usually maintained by a government or official body, to establish ownership and transactions.