Which of the following is NOT necessary in order to recognise revenue under the percentage of completion method?
A) Total costs for the project are reasonably determinable.
B) The contract price (total revenue)must be reasonably certain.
C) There must be a reasonable assurance of payment.
D) Engineering estimates of the percentage of completion have been made.

Question

Quizplus · Accepted Answer

The percentage of completion method primarily requires that total costs and the contract price are reasonably determinable, and there is reasonable assurance of payment. Engineering estimates of the percentage of completion, while commonly used, are not strictly necessary for revenue recognition under this method; other methods of measuring progress towards completion can also be used.

Which of the Following Is NOT Necessary in Order to Recognise