The percentage-of-completion method
A)recognizes a portion of the contract price as revenue during each accounting period of construction.
B)bases the amount of revenue, expense, and income on the proportion of total work performed during the accounting period.
C)measures the proportion of total work carried out during the accounting period either from engineers' estimates of the degree of completion or from the ratio of costs incurred to date to the total costs expected for the entire contract.
D)all of the above.
E)none of the above.

Question

Quizplus · Accepted Answer

The percentage-of-completion method recognizes a portion of the contract price as revenue during each accounting period of construction, bases the amount of revenue, expense, and income on the proportion of total work performed during the accounting period, and measures the proportion of total work carried out during the accounting period either from engineers' estimates of the degree of completion or from the ratio of costs incurred to date to the total costs expected for the entire contract. Therefore, all of the above options are correct.

The Percentage-Of-Completion Method