The Principal Disadvantage of Using the Percentage-Of-Completion Method of Recognizing

question 154

Multiple Choice

The principal disadvantage of using the percentage-of-completion method of recognizing revenue from long-term contracts is that it

• A)is unacceptable for income tax purposes.
• B)gives results based upon estimates which may be subject to considerable uncertainty.
• C)is likely to assign a small amount of revenue to a period during which a large amount of
• Revenue was actually earned.
• D)no revenue is recognized during the contract.

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Definitions:

Trans-1,4-Dipropylcyclohexane

A chemical compound featuring a cyclohexane ring with propyl groups attached at the 1 and 4 positions in a trans configuration.

Stable Conformation

The spatial arrangement of atoms in a molecule that is energetically favorable and has lower internal strain.

Cis-1,4-Dipropylcyclohexane

A cyclohexane derivative where two propyl groups are positioned on the same side of the cyclohexane ring at the 1st and 4th positions.

Stable Conformation

A molecular arrangement that is in a low energy state, making it less reactive and more resistant to changes.