Explain Briefly How a Company That Recognized Revenue Under the Percentage-Of-Completion

question 44

Essay

Explain briefly how a company that recognized revenue under the percentage-of-completion method (estimating percentage of completion using a cost-to-cost ratio) could manage earnings upward to meet a profit projection. What sort of ethical problems could result from that earnings management?

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Definitions:

Training Transfer

The act of successfully applying the competencies, knowledge, and skills gained from a training program to daily tasks and responsibilities in a work setting.

Opportunities to Practise

Situations or activities designed to allow individuals to apply and refine their skills through repeated performance.

Baldwin and Ford

Baldwin and Ford is a model that outlines the factors influencing the transfer of training, including trainee characteristics, training design, and work environment.

Transfer of Training Process

The application of skills, knowledge, or attitudes learned in one context to another context, typically from a training environment to the job.