Which of the following statements does not describe a long term construction project that is accounted for under the completed contract method?
A)Revenues are recognized evenly throughout the contract.
B)Revenues are recognized at the end of the project.
C)Losses are recognized immediately
D)None of these

Question

Quizplus · Accepted Answer

The completed contract method recognizes revenues and costs only at the end of the project, so revenues would not be recognized evenly throughout the contract. Option B correctly describes the completed contract method, while option C is also true as any losses are recognized immediately. Option D is not a valid answer as no statement is incorrect.

Which of the Following Statements Does Not Describe a Long