If a Company Uses the Completed-Contract Method of Accounting for Long-Term

question 40

Multiple Choice

If a company uses the completed-contract method of accounting for long-term construction contracts,then during the period of construction,financial information related to a long-term contract will

• A) appear on both the income statement and balance sheet during the construction period.
• B) appear only on the income statement during the period of construction.
• C) appear only on the balance sheet during the period of construction.
• D) not appear on the financial statements.

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Definitions:

Fertilized Ova

A zygote formed when an egg cell is fertilized by a sperm, marking the beginning of embryonic development.

Germinal Period

The initial two weeks of prenatal development after conception, characterized by rapid cell division and the beginning of cell differentiation.

Fertilization

The process of a sperm cell uniting with an egg cell, leading to the formation of a zygote and the beginning of pregnancy.

Zygote

The initial cell formed when a new organism is produced by means of sexual reproduction, following the union of male and female gametes.