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:

Cliques

Groups of 2 to 12 people whose members have frequent social interactions with one another.

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The coordination of small muscle movements in activities such as writing, cutting with scissors, and manipulating small objects.

Racial Identity

An individual's awareness and experience of being a member of a specific racial group, influencing their sense of self and group membership.