In Accounting for a Long-Term Construction Contract for Which There

question 7

Multiple Choice

In accounting for a long-term construction contract for which there is a projected profit,the balance in the Construction in Progress account at the end of the first year of work using the percentage-of-completion method would be

• A) zero.
• B) the same as the completed-contract method.
• C) higher than the completed-contract method.
• D) lower than the completed-contract method.