Which of the Following Statements Regarding the Completed Contract Method

question 106

Multiple Choice

Which of the following statements regarding the completed contract method is NOT true?

• A) The company makes the same annual entries to record costs of construction, progress billings, and collections from customers as those under the percentage-of-completion method.
• B) The company makes the same entries to recognize revenue as those under the percentage-of-completion method.
• C) The company makes different entries to recognize revenue than under the percentage-of-completion method.
• D) Losses on an unprofitable contract are immediately recorded.