If the completed-contract method is used,what is the basis for determining the income to be recognized in the second year of a three-year contract?
A) Cumulative actual costs incurred only
B) Incremental cost for the second year only
C) Latest available estimated costs
D) No income would be recognized in year 2

Question

Quizplus · Accepted Answer

Under the completed-contract method, income is recognized only when the contract is fully completed. Therefore, no income would be recognized in the second year of a three-year contract.

If the Completed-Contract Method Is Used,what Is the Basis for Determining