Garcon Building Ltd

question 11

Multiple Choice

Garcon Building Ltd.is a construction company located in Toronto.The company is responsible for several large building complexes currently being constructed in the Toronto area.Total revenue and costs can be readily estimated and each contract is expected to take several years to complete.Garcon is most likely to recognize revenue using which method?

• A)Percentage of completion method
• B)Instalment method
• C)At the time of contract signing
• D)Completed-contract method

---

Definitions:

Hypothesis

A proposed explanation for a phenomenon, intended to be tested through research.

Misery Loves Company

A popular adage implying that people who are unhappy may get some consolation from knowing that others are unhappy too.

Prediction

The act of forecasting what will happen in the future based on past and current data or evidence.

Theory

A system of ideas intended to explain something, based on general principles independent of the thing to be explained, often involving hypotheses that are tested through observation, experimentation, or other methods of scientific inquiry.