When accounting for long-term contracts (other than those for services),all of the following accounting methods may be acceptable with the exception of
A)the cash method of accounting.
B)the completed contract method.
C)the percentage of completion method.
D)the modified percentage of completion method.

Question

Quizplus · Accepted Answer

The cash method of accounting is not acceptable for long-term contracts because it does not match revenue and expenses with the period in which they are incurred. The completed contract method, the percentage of completion method, and the modified percentage of completion method are all acceptable methods for accounting for long-term contracts (other than those for services).

When Accounting for Long-Term Contracts (Other Than Those for Services),all