In the Case of a Small Home Construction Company That

question 74

Multiple Choice

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

• A) The percentage of completion method defers income recognition and must be used.
• B) The completed contract method will defer income and can be used.
• C) The completed contract method must be used.
• D) The accrual method must be used.
• E) None of the above is true.

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Definitions:

Performance

The act of carrying out or accomplishing an action, task, or function.

Equity Principle

A concept in organizational psychology and management that suggests fair treatment and rewards for employees, based on their contributions and efforts.

Goal Accomplishment

Goal accomplishment is the successful achievement of a set goal or objective, often resulting in a sense of satisfaction and progress.

Feedback

A process in which information about actions, performance, or behavior is given to individuals or groups to use as a basis for improvement or development.