A Company Uses the Percentage-Of-Completion Method to Account for a Four-Year

question 2

Multiple Choice

A company uses the percentage-of-completion method to account for a four-year construction contract.Progress billings sent in the second year that were collected in the third year would

• A) be included in the calculation of the income recognized in the second year.
• B) be included in the calculation of the income recognized in the third year.
• C) be included in the calculation of the income recognized in the fourth year.
• D) not be included in the calculation of the income recognized in any year.

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Definitions:

Obsession

Persistent, intrusive, and unwanted thoughts or urges that cause distress or anxiety, often seen in obsessive-compulsive disorder.

Biological Theories

Explanations in psychology that attribute complex phenomena such as personality, behavior, and mental disorders to biological factors like genetic, neurological, or evolutionary influences.

Primitive Urges

Basic, innate desires or instincts that motivate behavior.

Exposure And Response Prevention Therapy

A form of cognitive-behavioral therapy aimed at reducing compulsive behaviors by encouraging patients to confront their fears and decrease their sensitivity to them.