Under the Completed-Contract Method

question 51

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.

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Definitions:

Capillaries

Tiny blood vessels that connect arteries and veins, facilitating the exchange of oxygen, nutrients, and waste between blood and tissues.

Filtration

A physical or mechanical process used to separate solid particles from fluids or gases by passing them through a filter medium.

ATP

Adenosine triphosphate, an energy-carrying molecule found in the cells of all living things, which captures chemical energy obtained from the breakdown of food molecules.

Diffusion

The process by which molecules move from an area of higher concentration to an area of lower concentration.