When the Percentage-Of-Completion Method of Accounting for Long-Term Construction Projects

question 65

Multiple Choice

When the percentage-of-completion method of accounting for long-term construction projects is used,why is Construction in Progress increased by the annual recognized gross profit on long-term construction contracts?

• A) The cost of the contract has increased.
• B) The project's value has increased above cost.
• C) The economy experiences inflation over the construction period.
• D) Construction in Progress is not increased by the annual recognized profit.

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Definitions:

Body Temperature

A measure of the body's ability to generate and get rid of heat, indicative of the physical state of the body, typically around 37°C (98.6°F) in humans.

Hypothalamus

A region of the brain that controls an enormous number of bodily functions including hunger, thirst, sleep, and emotional activity.

Consciousness

The condition in which a person is conscious and can reflect on their own being, feelings, ideas, environment, and life events.

Suprachiasmatic Nucleus

A region in the brain's hypothalamus responsible for controlling circadian rhythms, including the sleep-wake cycle.