If the Completed-Contract Method Is Used,what Is the Basis for Determining

question 49

Multiple Choice

If the completed-contract method is used,what is the basis for determining the income to be recognized in the second year of a three-year contract?

• A) Cumulative actual costs incurred only
• B) Incremental cost for the second year only
• C) Latest available estimated costs
• D) No income would be recognized in year 2

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Definitions:

Hindi Language

A language spoken primarily in India, recognized as one of the official languages of the country.

Zulu Language

A Bantu language of South Africa spoken primarily by the Zulu people, one of the country's major linguistic and cultural groups.

Cognitive Development

The process through which individuals gain and improve their ability to think, solve problems, and understand the world around them over time.

Jean Piaget

A Swiss psychologist renowned for his pioneering work in child development, particularly his theory of cognitive development.