The Percentage-Of-Completion Method Does Not

question 27

Multiple Choice

The percentage-of-completion method does not

• A)recognize profit each period during the life of the contract in proportion to the portion of the contract completed during the period
• B)value the inventory at cost less any partial billings
• C)give precedence to economic substance over legal form
• D)value the inventory at the costs incurred plus the profit recognized to date less any partial billings

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