Under the completed contracted method of accounting for long-term construction projects, revenue is not recognized until the project is complete.

Question

Quizplus · Accepted Answer

Under the completed contracted method, revenue is only recognized once the project has been completed, regardless of the amount of work done or the costs incurred during the construction process. This method is commonly used in the construction industry to ensure that revenue is only recognized once the project has been completed and all risks associated with the project have been fully mitigated.

Under the Completed Contracted Method of Accounting for Long-Term Construction