U.S.GAAP requires that the completed contract method be used
A)when uncertainty obscures the total costs the contractor will incur in carrying out the project.
B)in situations when a firm has not found a specific buyer while construction progresses.
C)always to recognize income during construction projects.
D)in both circumstances a and b.
E)in none of the above situations.

Question

Quizplus · Accepted Answer

The completed contract method is used when the total costs of a project are uncertain and when a specific buyer has not been found.

USGAAP Requires That the Completed Contract Method Be Used