The Percentage-Of-Completion and Completed Contract Methods of Accounting for Long-Term

question 113

Multiple Choice

The percentage-of-completion and completed contract methods of accounting for long-term construction contracts will produce:

• A) The same amount of income in the year of completion.
• B) The same inventory carrying value each year during the construction period.
• C) Equal balances each period in the Billings On Contracts account.
• D) The same cost of construction (expense) each year for a project.

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Definitions:

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