Quizno Contracting Would Like to Utilize the Percentage of Completion

question 90

Multiple Choice

Quizno Contracting would like to utilize the percentage of completion method to recognize a building under construction for Balto Veterinary.However,the accountant is not sure whether Quizno Contracting is meeting GAAP expectations.It is appropriate for Quizno Contracting to apply the percentage of completion method EXCEPT when

• A)progress measures are dependable.
• B)contract obligations are precise and clear.
• C)the buyer has agreed to use the completed contract method of revenue recognition.
• D)both buyer and seller are expected to meet their obligations.
• E)little or no uncertainty exists regarding payment by the buyer.

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Definitions:

Electromagnetic

Pertaining to or emanating from the interaction of electric and magnetic fields, referring to the full spectrum of waves from radio to gamma rays.

Electroreceptors

Specialized cells or organs in some aquatic animals that allow them to detect electric fields in their environment, aiding in navigation, hunting, and communication.

Mechanoreceptors

Sensory receptors in the body that respond to mechanical pressure or distortion, crucial for senses like touch and hearing.

Thermoreceptors

Sensory receptors in the body that detect changes in temperature, helping to maintain homeostasis.