When Using the Percentage-Of-Completion Method of Accounting for Long-Term Contracts

question 67

Multiple Choice

When using the percentage-of-completion method of accounting for long-term contracts, the percentage of completion used to recognize gross profit in the first year usually is determined by measuring:

• A)Costs incurred in the first year, divided by estimated remaining costs to complete the project.
• B)Costs incurred in first year, divided by estimated total costs of the completed project.
• C)Costs incurred in first year, divided by estimated gross profit.
• D)None of the other answers is correct.

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Definitions:

Therapeutic Effect

The beneficial health outcome or improvement observed from a treatment or intervention.

Hand Reflexology

A form of therapy that involves applying pressure to specific points on the hands believed to correspond with different parts of the body to promote healing and relieve stress.

Reflexology

An alternative medicine practice involving the application of pressure to specific points on the feet, hands, or ears, based on the belief that these points correspond to different organs and systems in the body.

Corresponding Body Part

A specific region or organ of the body that relates to, or is associated with, a particular function or activity.