When the Outcome of a Fixed-Price Contract Cannot Be Reliably

question 69

Multiple Choice

When the outcome of a fixed-price contract cannot be reliably estimated,IFRS

• A)permits firms to use either the completed contract method or the cost-recovery method to account for the contract.
• B)rules do not permit firms to use the completed contract method.
• C)follows the same accounting method required by U.S.GAAP.
• D)permits considerable latitude when accounting for the contract.

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Definitions:

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The process of learning and adapting to the norms, customs, values, and behaviors necessary for participating within a society or group.

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Nutritious substances that living organisms eat or drink to maintain life and growth.

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A tasteless, odorless, and transparent liquid that forms the world's streams, lakes, oceans, and rain and is necessary for all known forms of life.