The Most Popular Input Measure Used to Determine the Progress

question 11

Multiple Choice

The most popular input measure used to determine the progress toward completion in the event a company qualifies to recognize revenue over a period of time is

• A) cost-benefit basis.
• B) percentage-of-completion basis.
• C) cost-to-cost basis.
• D) collection basis.

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Definitions:

Sales Return

Transactions that involve the returning of sold goods by customers, resulting in a reduction of revenue.

Credits

Credits are accounting entries that increase liabilities or equity accounts, or decrease asset or expense accounts.

Sales Returns And Allowances

Purchase returns and allowances from the seller’s perspective. See Purchase return and Purchase allowance, above.

Multiple-Step Income Statement

An income statement that shows several steps in determining net income.