Under ASPE, the Profession Requires That the Percentage-Of-Completion Method Be

question 1

Multiple Choice

Under ASPE, the profession requires that the percentage-of-completion method be used when certain conditions exist. Which of the following is NOT one of those necessary conditions?

• A) Estimates of progress toward completion, revenues, and costs are reasonably dependable.
• B) The contractor can be expected to perform the contractual obligation.
• C) The buyer can be expected to satisfy some of the obligations under the contract.
• D) The contract clearly specifies the enforceable rights of the parties, the consideration to be exchanged, and the manner and terms of settlement.

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Definitions:

Two-Track Mind

The concept that the human mind operates both consciously and unconsciously at the same time.

Effortful Processing

A type of memory encoding that requires attention and conscious effort, as opposed to automatic processing.

New Classmate

A recent addition to a class or educational setting, who may be adjusting to new social and learning environments.

Implicit Memory

A type of memory in which previous experiences aid in the performance of a task without conscious awareness of these previous experiences.