In the Case of a Small Home Construction Company That

question 31

Multiple Choice

In the case of a small home construction company that builds under long-term contracts, generally:

• A) The percentage of completion method is required to report the income from the construction contracts.
• B) The percentage of completion method can be elected and generally will defer income until the contract is completed.
• C) The completed contract method can be used and generally will defer income.
• D) The accrual method must be used because inventories are an income-producing factor.
• E) None of the above is true.

---

Definitions:

Birth to Age 12

Describes the developmental period from infancy through childhood prior to adolescence, encompassing physical, cognitive, and emotional growth.

Talking About Death

The act of discussing or addressing the topic of dying and mortality.

Adults

Individuals who have reached a certain age of maturity, typically recognized by various legal, social, and cultural standards, and are considered capable of managing their own affairs.

Children

Young human beings below the age of puberty or below the legal age of majority.