When Accounting for Long-Term Contracts (Other Than Those for Services),all

question 2

Multiple Choice

When accounting for long-term contracts (other than those for services) ,all of the following accounting methods may be acceptable with the exception of

• A)the cash method of accounting.
• B)the completed contract method.
• C)the percentage of completion method.
• D)the modified percentage of completion method.

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Definitions:

Fugitive Slave Act

Part of the Compromise of 1850, this law required that escaped slaves, upon capture, be returned to their masters and that officials and citizens of free states had to cooperate.

Kansas-Nebraska Act

A 1854 law that created the territories of Kansas and Nebraska, leaving the decision of slavery up to the popular sovereignty of those territories, effectively repealing the Missouri Compromise.

Stephen Douglas

An American politician from Illinois who was a leader of the Democratic Party and famously debated Abraham Lincoln during the 1858 Senate contest.

Transcontinental Railroad

The railway system completed in 1869 that connected the east and west coasts of the United States, greatly facilitating travel and commerce.