The Completed-Contract Method (As Opposed to the Percentage-Of-Completion Method)of Accounting

question 62

Multiple Choice

The completed-contract method (as opposed to the percentage-of-completion method) of accounting for revenue from long-term construction contracts should be used in which of the following circumstances?

• A) The contractor has been in business for many years and has completed many contracts in the past.
• B) Reasonably accurate estimates of the degree of completion cannot be made due to the lack of experience with similar types of contracts.
• C) Reasonable accurate estimates of the degree of completion can be made based on past experience.
• D) The contracts are of a relatively long duration.

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Definitions:

New France

New France was the area colonized by France in North America from the 16th to the 18th century, encompassing parts of what are now Canada, the United States, and the Caribbean.

French Huguenots

Members of the Protestant Reformed Church of France during the 16th and 17th centuries who faced severe persecution for their faith.

Indentured Servants

Indentured servants were individuals who contracted to work for a specific period, typically four to seven years, in exchange for passage to the New World, food, and lodging, prevalent in colonial America.

Bartolomé de Las Casas

A 16th-century Spanish historian and Dominican missionary who advocated for the rights of Indigenous peoples in the Americas.