Under the Percentage-Of-Completion Method of Income Recognition on Long-Term Construction

question 79

Multiple Choice

Under the percentage-of-completion method of income recognition on long-term construction contracts:

• A) No income amount is closed each period to income summary.
• B) The ending inventory is the same as it would be if accounted for under the completed contract method.
• C) Income is accumulated in the "Construction-in-Progress" inventory account.
• D) The percentage of completion in any year depends on the proportion of billings collected.

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Definitions:

Repair Process

A series of steps taken to restore damaged, broken, or failed equipment, devices, or materials to a good or working condition.

Finite Population

A population with a countable number of members or elements, making it possible to obtain a complete count.

Service Time

The duration required to perform a service from start to finish, including all processing and waiting times.