The principal disadvantage of using the percentage-of-completion method of recognizing revenue from long-term contracts is that it
A)is unacceptable for income tax purposes.
B)gives results based upon estimates which may be subject to considerable uncertainty.
C)is likely to assign a small amount of revenue to a period during which a large amount of
Revenue was actually earned.
D)no revenue is recognized during the contract.

Question

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The Answer of The principal disadvantage of using the percentage-of-completion method of recognizing revenue from long-term contracts is that it
A)is unacceptable for income tax purposes.
B)gives results based upon estimates which may be subject to considerable uncertainty.
C)is likely to assign a small amount of revenue to a period during which a large amount of
Revenue was actually earned.
D)no revenue is recognized during the contract.

The Principal Disadvantage of Using the Percentage-Of-Completion Method of Recognizing