Under the Completed Contract Method, Revenue Is Recognized

question 69

Multiple Choice

Under the completed contract method, revenue is recognized

• A) periodically as work is completed.
• B) when the initial contract is signed.
• C) when the customer pays.
• D) when the product is delivered to the customer.

Grasp the foundational ethical theories, including duty-based ethics, outcome-based ethics, and the principle of rights theory.

Distinguish between legal compliance and ethical decision-making beyond the law.

Understand the impact of laws, such as the Sarbanes-Oxley Act, on promoting ethical business practices.

Evaluate the effectiveness of industry codes of ethics based on leadership commitment to enforcement.

---

Definitions:

Perpetual Inventory System

A method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Periodic Inventory System

An inventory accounting system that updates inventory levels and cost of goods sold at the end of an accounting period, rather than after each sale or purchase.

FIFO

"First In, First Out," an inventory valuation method where goods first received are the first to be sold or used, assuming costs rise over time.