Which Accounting Method Is Permitted Under ASPE for Construction Contracts

question 94

Multiple Choice

Which accounting method is permitted under ASPE for construction contracts?

• A)An accounting method that recognizes revenue and expenses on a cash basis.
• B)An accounting method that recognizes revenue and expenses only after it is completed.
• C)An accounting method that recognizes costs as incurred and an amount of revenue equal to the costs that are expected to be recovered on the contract.
• D)An accounting method that recognizes revenue and expenses based on the fair value of the contract.

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Definitions:

Cultural Transmission

The process by which norms, values, knowledge, and skills are passed from one generation to the next within a society.

Learning

The process of acquiring knowledge or skills through experience, study, or being taught, leading to a lasting change in behavior or understanding.

Teratogen

An agent or factor that can cause malformation of an embryo or fetus during prenatal development.

Environmental Agent

A factor or substance in the environment that can potentially cause harm or adverse health effects to organisms or ecosystems.