If the Percentage-Of-Completion Method Is Used,what Is the Basis for Determining

question 28

Multiple Choice

If the percentage-of-completion method is used,what is the basis for determining the gross profit to be recognized in the second year of a three-year contract?

• A) Cumulative actual costs and estimated costs to complete
• B) Incremental cost for the second year only
• C) Cumulative actual costs incurred only
• D) No gross profit would be recognized in year 2

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Definitions:

Structured Activities

Organized events or tasks designed with specific goals or purposes in mind, often facilitating learning, development, or engagement in a structured manner.

Social Class

A division of a society based on social and economic status, influencing an individual's opportunities, lifestyle, attitudes, and behaviors.

Genetic

Relating to genes or heredity, often discussing traits or conditions that are passed from parents to offspring.

Socialization

The process by which individuals learn and internalize the values, beliefs, and norms of their society, becoming functional members of that society.