The Principal Disadvantage of Using the Percentage-Of-Completion Method of Recognizing

question 89

Multiple Choice

The principal disadvantage of using the percentage-of-completion method of recognizing revenue from long-term contracts is that it

• A) is unacceptable for income tax purposes.
• B) gives results based upon estimates which may be subject to considerable uncertainty.
• C) is likely to assign a small amount of revenue to a period during which a large amount of revenue was actually earned.
• D) no revenue is recognized during the contract.

---

Definitions:

Visual Learner

An individual who learns best through visual means such as diagrams, charts, and videos.

Key Points

Essential or main ideas, concepts, or elements of a discussion, argument, or presentation that are emphasized or should be focused on.

Professional Polish

The level of sophistication, grooming, and manners expected in a professional setting, contributing to a positive image.

Note Taking System

Organized methods for recording information from lectures, readings, or other sources for review and study purposes.