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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Definitions:

Tragedy of the Commons

A situation in economic theory where individual users consuming shared resources act according to their own self-interest contrary to the common good of all users, leading to resource depletion.

Agricultural Sustenance

Practices and methods of farming that support the long-term productivity and health of the land, aiming for food security and environmental sustainability.

Pollution Prevention

Strategies and practices aimed at reducing or eliminating the production of pollutants at their source, rather than managing them after they have been created.

Pollution Cleanup

The process of removing contaminants from the environment, including soil, water, and air, to reduce pollution and restore ecosystems to their natural state.