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:

ABC Model

A framework in cognitive behavioral therapy that outlines the relationship between an activating event, beliefs, and consequences.

Self-Report Questionnaires

A research or assessment tool in which individuals provide information about themselves, typically regarding attitudes, behaviors, or personality.

Counterproductive Work Behavior

Behavior that violates organizational norms and causes harm to the organization and/or employees.

Power Distance

A societal characteristic that indicates the degree to which individuals with less authority within organizations or communities accept and anticipate an unequal distribution of power.