A Company Changes from Percentage-Of-Completion to Completed-Contract Method, Which Is

question 25

Multiple Choice

A company changes from percentage-of-completion to completed-contract method, which is used for tax purposes. The entry to record this change should include a

• A) debit to Construction in Process.
• B) debit to Loss on Long-term Contracts in the amount of the difference on prior years, net of tax.
• C) debit to Retained Earnings in the amount of the difference on prior years, net of tax.
• D) credit to Deferred Tax Liability.

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Definitions:

Leader Effectiveness

Leader effectiveness is a measure of a leader's ability to achieve desired outcomes, influence followers, and contribute to organizational success.

Coalition Formation

Involves the creation of alliances or partnerships among groups or individuals to achieve shared objectives or to advance common interests.

Budgeting Process

The procedure of creating a plan to spend money over a certain period, guiding how financial resources are allocated.

Coercive Power

The ability to compel or influence someone's behavior through the threat of punishment or negative consequences.