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In 20x2, a Firm Changed from the Completed Contract (CC)method

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In 20x2, a firm changed from the completed contract (CC) method of accounting for revenue on long-term contracts to the percentage of completion (PC) method.The firm's 20x1 and 20x2 comparative financial statements will reflect which method or methods. In 20x2, a firm changed from the completed contract (CC) method of accounting for revenue on long-term contracts to the percentage of completion (PC) method.The firm's 20x1 and 20x2 comparative financial statements will reflect which method or methods.   A) Choice 1 B) Choice 2 C) Choice 3 D) Choice 4


Definitions:

Straight-Line Method

A depreciation method applying an equal expense rate each year over the useful life of the property.

Estimated Residual Value

The anticipated market value of an asset at the end of its useful life, used in calculating depreciation.

Double-Declining-Balance

A method of accelerated depreciation which doubles the normal depreciation rate, reducing the value of an asset more quickly.

Depreciation Expense

Systematically spreading the expense of a physical asset over its duration of utility.

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