Which of the Following Statements Does NOT Describe a Long-Term

question 116

Multiple Choice

Which of the following statements does NOT describe a long-term construction project that is accounted for under the completed-contract method?

• A) Revenues are recognized at the end of the contract.
• B) Revenues are recognized evenly throughout the contract.
• C) Gross profit is recognized at the end of the contract.
• D) Losses are recognized immediately.

---

Definitions:

Turnover Ratio

A measure of the trading activity in a portfolio, indicating how often assets within the portfolio are bought and sold over a specific period.

Average Daily Assets

A measure used in finance to calculate the average value of assets held by a fund or company over a specific period.

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.

Lock-up

A period post-initial public offering (IPO) during which shareholders are restricted from selling their shares.