When is revenue recognized under the completed contract method?
A) Throughout the project as bills are sent to the customer.
B) Throughout the project as cash payments are received from the customer.
C) When construction begins on the project.
D) When the project is complete.

Question

Quizplus · Accepted Answer

Revenue is recognized under the completed contract method when the project is complete. This means that revenue and expenses are not recognized until the project is finished, and then they are recognized all at once. This is different from other methods, such as the percentage of completion method, which recognize revenue and expenses as the project progresses.

When Is Revenue Recognized Under the Completed Contract Method