Which of the following statements regarding the percentage-of-completion and completed contract methods of accounting for long-term construction contracts are true?
A) They recognize different amounts of income for the construction period.
B) They produce the same inventory carrying values during the construction period.
C) Neither requires losses to be recognized in the period of occurrence.
D) Under only the percentage of completion method is it possible to recognize a loss for the period when an overall profit is expected on the contract.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements regarding the percentage-of-completion and completed contract methods of accounting for long-term construction contracts are true?
A) They recognize different amounts of income for the construction period.
B) They produce the same inventory carrying values during the construction period.
C) Neither requires losses to be recognized in the period of occurrence.
D) Under only the percentage of completion method is it possible to recognize a loss for the period when an overall profit is expected on the contract.

Which of the Following Statements Regarding the Percentage-Of-Completion and Completed