In 2011, U.S. Consumption Spending Was Approximately

question 115

Multiple Choice

In 2011, U.S. consumption spending was approximately

• A) $15 trillion.
• B) $10 trillion.
• C) $5 trillion.
• D) $1 billion.
• E) $800 billion.

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Definitions:

Percentage-Of-Completion Method

An accounting method used to recognize revenue and expenses of long-term contracts as a proportion of the work completed during the period.

Revenue Recognition

The accounting principle that outlines the specific conditions under which revenue is recognized as earned and can be reported on financial statements.

Contract Price

The total agreed upon amount to be paid for goods or services as specified in a contract.

Percentage-Of-Completion Method

is an accounting technique used to recognize revenue and expenses of long-term contracts proportionally as the work is completed.