What Is the Major Advantage of the Percentage-Of-Completion Method Compared

question 86

Multiple Choice

What is the major advantage of the percentage-of-completion method compared with the cost- recovery method of revenue recognition?

• A)Percentage-of-completion gives a more realistic indication of a firm's economic activity.
• B)Percentage-of-completion allows managers some latitude in deciding how much revenue and expenses to report each period.
• C)Percentage-of-completion produces more reliable financial statements.
• D)Percentage-of-completion is the more conservative method.

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Definitions:

Living Conditions

The circumstances affecting the daily life and well-being of people, including their housing, environment, and access to resources and services.

Great Strike

A significant labor strike, often referring to the first nationwide railroad strike in the United States in 1877.