Which Statement Best Explains the Completed Contract Method

question 57

Multiple Choice

Which statement best explains the completed contract method?

• A)An accounting method that defers revenue and expense recognition until the date when the contractor completes the project.
• B)An accounting method that recognizes revenue and expenses on a contract in proportion to the degree of progress.
• C)An accounting method that recognizes an amount of revenue equal to the costs that are expected to be recovered on the contract.
• D)An accounting method that recognizes revenue and expenses based on the fair value of the contract.

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Definitions:

Final Phase

The last stage or part of a process, often marking the completion of a project or the end of a period.

Sexual Response

The physiological and emotional reactions of an individual to sexual stimulation, which can include phases of arousal, plateau, orgasm, and resolution.

Excitement

The condition of being emotionally aroused and stimulated.

Non-Aroused State

A physiological and psychological condition of not being sexually excited or stimulated.