Under the Percentage-Of-Completion Contract Method

question 47

Multiple Choice

Under the percentage-of-completion contract method

• A) revenue and cost are recognized during the production cycle, but gross profit recognition is deferred until the contract is completed.
• B) revenue, cost, and gross profit are recognized during the production cycle.
• C) revenue, cost, and gross profit are recognized at the time the contract is completed.
• D) none of these

---

Definitions:

Y-intercept

The point where a graph intersects the y-axis, representing the value of the dependent variable when all independent variables are zero.

X-intercept

The point where a curve intersects the x-axis on a graph, indicating where the function has a value of zero.

Y-intercept

The point where a line or curve intersects the y-axis of a graph.

Absolute Value

The distance of a number from zero on the number line, without considering which direction from zero the number lies.