For Long-Term Construction Contracts, When There Is Not Assurance That

question 10

Multiple Choice

For long-term construction contracts, when there is not assurance that the buyer can be expected to satisfy its obligations under a contract, which of the following revenue recognition methods is preferable?

• A) percentage-of-completion method
• B) installment method
• C) deferral method
• D) completed-contract method

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Definitions:

World Bank

An organization established by the industrialized nations in 1946 to loan money to underdeveloped and developing countries; formally known as the International Bank for Reconstruction and Development.