The completed contract method for accounting for long-term construction projects
A)requires that no revenue is recognized until the project is completed.
B)requires that costs are accumulated and revenue is recognized in proportion to cash collected.
C)is not compatible with the contract-based approach to revenue recognition
D)(a) and (c)

Question

Quizplus · Accepted Answer

The completed contract method recognizes revenue only when the project is completed, aligning with choice A. It is not compatible with the contract-based approach, which recognizes revenue over time, aligning with choice C.

The Completed Contract Method for Accounting for Long-Term Construction Projects