Which Statement About the Percentage of Completion Method Is Correct

question 86

Multiple Choice

Which statement about the percentage of completion method is correct?

• A)This method recognizes revenue on a straight-line basis.
• B)This method can only be used if there are no uncertainties about how much the contract will cost or how long it will take to complete.
• C)This method allocates revenue, not construction costs.
• D)This method allocates construction costs, not revenue.

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Definitions:

Long Bone

A type of bone that is longer than it is wide, functioning to support the weight of the body and facilitate movement.

Yellow Marrow

Bone marrow that is mostly fat; fills the interior of most adult long bones.

Pelvic Girdle

A ring-like bony structure located at the base of the spine and connected to the thigh bones, supporting the weight of the upper body.

Hip Bone

A large, irregularly shaped bone forming the upper part of each half of the pelvis, composing of three parts - the ilium, the ischium, and the pubis.