The percentage-of-completion method provides information about the seller's performance during the contract period; in contrast, the completed contract method reports all profit only when seller completes the contract.

Question

Quizplus · Accepted Answer

The statement is correct. The percentage-of-completion method recognizes revenue and expenses proportionate to the degree of completion of the contract. This allows for a more accurate reflection of the seller's performance during the contract period. On the other hand, the completed contract method recognizes all revenue and expenses only when the contract is completed, which may not reflect the seller's performance over time.

The Percentage-Of-Completion Method Provides Information About the Seller's Performance During