When is revenue recognized under the completed contract method?
A) When construction begins on the project.
B) When the project is complete.
C) Throughout the project as cash payments are received from the customer.
D) Throughout the project as bills are sent to the customer.

Question

Quizplus · Accepted Answer

Revenue is recognized under the completed contract method when the project is complete. This method waits until all or a significant portion of the work is finished before recognizing any of the revenue from the contract.

When Is Revenue Recognized Under the Completed Contract Method