The Completed-Contract Method for Recognising Profit on a Construction Contract

question 3

Multiple Choice

The completed-contract method for recognising profit on a construction contract will usually,during the life of a particular contract:

• A) shows a higher amount in some years and a lower amount in other years for the asset 'construction-in-progress' than will the percentage-of-completion method
• B) shows the same amount for the asset 'construction-in-progress' than will the percentage-of-completion method
• C) shows a higher amount for the asset 'construction-in-progress' than will the percentage-of-completion method
• D) shows a lower amount for the asset 'construction-in-progress' than will the percentage-of-completion method

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Definitions:

Motor Development

Refers to the progression of muscle coordination, strength, and the ability to move and control physical actions.

Social Environment

The immediate physical and social setting in which people live or in which something happens or develops.

Kohlberg's

Pertains to Lawrence Kohlberg's theory of moral development, which proposes that moral reasoning develops in stages throughout a person's life.

Naïve Reward Orientation

An approach where individuals expect immediate gratification for their actions, without a comprehensive understanding of the consequences or the effort required.