The percentage-of-completion method recognizes gross profit ________.
A) over the life of the contract
B) at the end of the contract
C) at the beginning of the contract
D) one year after completion of contract

Question

Quizplus · Accepted Answer

The percentage-of-completion method recognizes gross profit over the life of the contract as work is completed, allowing revenue and expenses to be matched in the periods in which they are incurred.

The Percentage-Of-Completion Method Recognizes Gross Profit ________