If a Company Uses the Completed Contract Method Rather Than

question 178

Multiple Choice

If a company uses the completed contract method rather than the percentage of completion method, the total profit the company recognizes from the beginning of the project throughout its completion will be which of the following?

• A) Greater if the completed contract method is used.
• B) Greater if the percentage of-completion method is used.
• C) The same for both methods.
• D) Greater for the completed-contract method only if the project takes longer than five years to complete.

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Definitions:

Mobiles

Portable electronic devices with connectivity capabilities, such as smartphones and tablets, used for communication and information access.

Welfare Benefits

Government-provided support to individuals or families, especially those with low incomes, in the form of financial aid or services.

Gross Private Domestic Investment

The total capital investment in an economy by private sector entities, excluding government spending.

Durable Goods

Goods not for immediate consumption that can be used over a period of time, such as appliances, cars, and furniture.