Under the Completed-Contract Method

question 88

Multiple Choice

Under the completed-contract method,

• A) revenue, costs, and gross profit are recognized during the contract.
• B) revenue and costs are recognized during the contract, but gross profit recognition is deferred until the contract is completed.
• C) costs are recognized during the contract, but revenue and gross profit are not.
• D) revenue, costs and gross profit are not recognized until the contract is finished.