Which statement best explains the completed contract method?
A)An accounting method that defers revenue and expense recognition until the date when the contractor completes the project.
B)An accounting method that recognizes revenue and expenses on a contract in proportion to the degree of progress.
C)An accounting method that recognizes an amount of revenue equal to the costs that are expected to be recovered on the contract.
D)An accounting method that recognizes revenue and expenses based on the fair value of the contract.

Question

Quizplus · Accepted Answer

The completed contract method defers revenue and expense recognition until the date when the contractor completes the project.

Which Statement Best Explains the Completed Contract Method