In Selecting an Accounting Method for a Newly Contracted Long-Term

question 60

Multiple Choice

In selecting an accounting method for a newly contracted long-term construction project under private entity GAAP, the principal factor to be considered should be

• A)the terms of payment in the contract.
• B)the degree to which a reliable estimate of the costs to complete and extent of progress toward completion is practicable.
• C)the method commonly used by the contractor to account for other long-term construction contracts.
• D)the inherent nature of the contractor's technical facilities used in construction.

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Definitions:

Public Disclosure

The act of making information or data available to the general public, often mandatory for government bodies and public companies.

Ethical Behavior

Conduct that is consistent with what society, individuals, or businesses consider to be good values or moral principles.

Organizational Commitment

The psychological attachment and loyalty an employee has towards their organization, influencing their willingness to remain part of the team.

Kinds

Kinds refer to categories or types that share common characteristics or attributes.