When there is a continuous earnings process, but the progress toward completion is not measurable, ASPE requires the use of the
A) completed-contract method.
B) percentage-of-completion method.
C) zero-profit method.
D) discrete earnings method.

Question

Quizplus · Accepted Answer

Under ASPE, when there is a continuous earnings process but the progress toward completion is not measurable, the completed-contract method is used. This method recognizes revenue and profits only when the contract is completed.

When There Is a Continuous Earnings Process, but the Progress