A Simple Sequential Project (Each Task Must Be Completed Before

question 5

Multiple Choice

A simple sequential project (each task must be completed before the next one can begin) has the time estimates (in days) shown below: What is the likelihood the project will be completed in 10 days?

• A)Between 88 and 88 percent
• B)Between 89 and 92 percent
• C)Between 93 and 98 percent
• D)Between 99 and 100 percent

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Definitions:

Revenue Recognition

The accounting standard that identifies the exact circumstances where revenue is considered or documented.

Percentage of Completion

Percentage of completion is an accounting method used to recognize revenue and expenses of long-term projects proportionally to the work completed.

Realizable Revenue

The amount of revenue that is considered to be collectible from goods sold or services rendered.

Revenue Recognition

The accounting principle that income should be reported in the accounting period when it is earned, regardless of when the cash is received.