Which of the Following Is NOT Necessary in Order to Recognise

question 14

Multiple Choice

Which of the following is NOT necessary in order to recognise revenue under the percentage of completion method?

• A) Total costs for the project are reasonably determinable.
• B) The contract price (total revenue)must be reasonably certain.
• C) There must be a reasonable assurance of payment.
• D) Engineering estimates of the percentage of completion have been made.

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Definitions:

Unambiguous Binding Agreement

A contract or agreement that is clear and unequivocal in its terms and is legally enforceable upon the parties involved.

Certain Bargain

A firm agreement or deal between parties with defined and specific terms.

Expression of Opinion

A statement that conveys someone's personal thoughts, beliefs, or judgments rather than objective facts.

Agree to a Bargain

To consent to the terms of an agreement or deal, often after negotiation.