When Using the Percentage-Of-Completion Method to Account for a Long-Term

question 107

Multiple Choice

When using the percentage-of-completion method to account for a long-term contract, the percentage used to recognize gross profit in the first year is determined by dividing ________.

• A) costs incurred in the first year by estimated total costs of the project
• B) costs incurred in the first year by estimated remaining costs of the project
• C) costs in the first year by contract price
• D) estimated total profit by contract price

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Definitions:

Neuroscientific

Pertaining to neuroscience, the scientific study of the nervous system, its structure, function, development, genetics, biochemistry, physiology, pharmacology, and pathology.

Psychometric

Referring to the field of study concerned with the theory and technique of psychological measurement, which includes the development and application of tests to measure abilities, attitudes, and personality traits.

Causal Relationships

A connection between two events where one is understood to be directly responsible for causing the other.

Dependent Variable

In an experiment, the variable being tested and measured, expected to change as a result of manipulations of the independent variable.