The 'Percentage of Completion' That May Be Used to Account

question 22

Multiple Choice

The 'percentage of completion' that may be used to account for construction contracts can be justified on the basis that:

• A) The contractor will be continuously working and therefore earning revenue.
• B) In most long-term construction projects, payments are made periodically throughout the life of the contract allowing revenue to be recognised.
• C) It is unreasonable to expect a contractor to record revenue only when construction is completed.
• D) The contracting firm may be considered to be in a continuous sales transaction.
• E) All of the given answers.

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Definitions:

Quality Control Staff

Personnel responsible for monitoring and inspecting products or services to ensure they meet predefined quality standards and identifying areas for quality improvement.

Internal Company Issues

Challenges or problems that arise within an organization, affecting its operations, culture, or employee relations.

Stakeholders

Individuals or groups with an interest or stake in the outcome of a project, policy, or decision, including shareholders, employees, customers, and suppliers.

Poor Quality Products

Goods that fail to meet quality standards or satisfy customer expectations.