The Principal Advantage of the Completed-Contract Method Is That

question 78

Multiple Choice

The principal advantage of the completed-contract method is that

• A) reported revenue is based on final results rather than estimates of unperformed work.
• B) it reflects current performance when the period of a contract extends into more than one accounting period.
• C) it is not necessary to recognize revenue at the point of sale.
• D) a greater amount of gross profit and net income is reported than is the case when the percentage-of-completion method is used.

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