When comparing the percentage-of-completion and completed-contract methods of accounting for long-term construction contracts,both methods will report the same
A) balances each period in the Progress Billings account.
B) expense for cost of construction each year.
C) amount of income in the year of completion.
D) inventory carrying value each year during the construction period.

Question

Quizplus · Accepted Answer

Both methods will report the same balances each period in the Progress Billings account because this account reflects the amount billed to the customer, which is independent of the revenue recognition method.

When Comparing the Percentage-Of-Completion and Completed-Contract Methods of Accounting for Long-Term