Companies May Use the Completed-Contract Method Only If the Contract

question 101

Multiple Choice

Companies may use the completed-contract method only if the contract ________.

• A) is for less than two years
• B) exceeds five years
• C) does not meet criteria for percentage-of-completion method
• D) does not meet criteria for installment sales method

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Definitions:

Pay Stub

A document provided to an employee with each paycheck that details the wages earned for the pay period and the year-to-date, including taxes and other deductions.

Private Carrier

A company or individual that offers transportation services not to the general public but under specific contracts or agreements.

Reasonable Care

The degree of caution and concern an ordinarily prudent and rational person would use in similar circumstances.

Parcel

A piece of land, property, or object that is to be delivered or considered as a unit.