The Theoretical Support for Using the Percentage-Of-Completion Method of Accounting

question 39

Multiple Choice

The theoretical support for using the percentage-of-completion method of accounting for long-term construction projects is that it

• A) is more conservative than the completed-contract method.
• B) produces a realistic matching of expenses with revenues.
• C) more closely conforms to the cost principle.
• D) reports a lower Net Income figure than the completed-contract method.

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