Which Accounting Method Is Permitted Under ASPE for Construction Contracts

question 43

Multiple Choice

Which accounting method is permitted under ASPE for construction contracts in limited circumstances?

• A)An accounting method that recognizes revenue and expenses on a cash basis.
• B)An accounting method that recognizes revenue and expenses only after it is completed.
• C)An accounting method that recognizes costs as incurred and 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.

Calculate target profit and the necessary sales in units and dollars to achieve it.

Recognize key figures and their contributions to Golden Age Hollywood films.

Understand the relationship between Hollywood and government regulations during the late 1930s and World War II.

Identify and describe the narrative structures and techniques used in iconic films of the early 20th century.

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Definitions:

Cash Basis

An accounting method where revenue and expenses are recorded only when cash is received or paid, respectively.

Pay Back

Refers to the time period required for an investment to generate cash flows or profits to cover its initial cost.

Accounting Break-even

The point at which total costs match total revenues, indicating that a business is neither making a profit nor a loss.

Net Present Value

The variance between the current worth of cash inflows and the current worth of cash outflows over a specific duration, employed to evaluate the profitability of an investment.