Under GAAP,the Completed Contract Method Is an Acceptable Alternative to the Percentage-Of-Completion

question 64

True/False

Under GAAP,the completed contract method is an acceptable alternative to the percentage-of-completion method of accounting for any given long-term construction project.

---

Definitions:

Bonds Payable

Long-term debt securities issued by corporations or governments, promising to pay the holder a specified amount of interest and to repay the principal at maturity.

Contract Interest Rate

The interest rate specified within a financial contract, such as a loan or bond agreement, that determines the interest payments.

Paid-In Capital

Capital contributed to a corporation by the stockholders and others.

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation and a claim on part of the company’s profits.