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.

---

Definitions:

Memories

Storage areas within a computer or PLC used to hold program instructions, operational data, and other information.

Rung Condition

The current true or false state of a line of logic in ladder diagram programming.

OTE Instruction

An instruction used in programmable logic controllers (PLCs) that stands for "Output Energize," controlling the on/off status of an output based on logic conditions.

OTE Instruction

An "Output Energize" instruction used in PLC programming to turn on or off a specified output.