If a Company Uses the Completed Contract Method Rather Than

question 61

Multiple Choice

If a company uses the completed contract method rather than the percentage of completion method, the total profit the company recognizes from the beginning of the project throughout its completion will be which of the following?

• A) The same for both methods.
• B) Greater if the completed contract method is used.
• C) Greater for the completed-contract method only if the project takes longer than five years to complete.
• D) Greater if the percentage of-completion method is used.

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Definitions:

Technological Breakthroughs

Significant progression or development in technology that creates a new foundation for further advancements and innovation.

Investment Projects

Initiatives or plans undertaken to allocate resources, expecting to generate returns or benefits over time.

Loanable Funds

The market for lending and borrowing of capital, where the supply comes from savings and the demand comes from borrowers.

Government Deficit

A situation where a government's expenditures exceed its revenues.