Which of the following is not an element identified by the AICPA as being necessary in order to use percentage-of-completion accounting?
A) The construction period can be reasonably estimated.
B) The buyer can be expected to satisfy obligations under the contract.
C) Dependable estimates can be made of the extent of progress toward completion.
D) Dependable estimates can be made of contract costs.

Question

Quizplus · Accepted Answer

The AICPA does not identify the ability to reasonably estimate the construction period as a necessary element for using percentage-of-completion accounting. The focus is on the ability to make dependable estimates of progress and costs, and the buyer's ability to fulfill contract obligations.

Which of the Following Is Not an Element Identified by the AICPA