The completed-contract method recognizes all income when the contract is completed,while the percentage-of-completion method recognizes income as work progresses on the contract.The completed-contract method is the conservative method.

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This is a true statement. The completed-contract method delays recognition of income until the contract is completed, while the percentage-of-completion method recognizes income as work progresses. Consequently, the completed-contract method is considered to be the more conservative of the two methods.

The Completed-Contract Method Recognizes All Income When the Contract Is