Revenue on a Long-Term Contract Should Not Be Recognized According

question 248

Multiple Choice

Revenue on a long-term contract should not be recognized according to the proportion of the performance obligation that has been completed if:

• A) Completion rates are certain.
• B) Profits are low.
• C) Projects are more than five years to completion.
• D) The arrangement does not qualify for revenue recognition over time.

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Definitions:

Calculator

An electronic device or software program used for performing mathematical calculations.

Real Number

A numerical representation of a quantity on a continuous spectrum, encompassing all rational and irrational numbers.

Radical Expression

An algebraic expression that contains a square root, cube root, or any other higher root.

Evaluate

The process of determining the value of a mathematical expression.