The percentage-of-completion and completed contract methods of accounting for long-term construction contracts will produce:
A) The same amount of income in the year of completion.
B) The same inventory carrying value each year during the construction period.
C) Equal balances each period in the Billings On Contracts account.
D) The same cost of construction (expense) each year for a project.

Question

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The Answer of The percentage-of-completion and completed contract methods of accounting for long-term construction contracts will produce:
A) The same amount of income in the year of completion.
B) The same inventory carrying value each year during the construction period.
C) Equal balances each period in the Billings On Contracts account.
D) The same cost of construction (expense) each year for a project.

The Percentage-Of-Completion and Completed Contract Methods of Accounting for Long-Term