In the case of a small home construction company that builds under long-term contracts,generally:

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Since the company builds under long-term contracts, it can use either the percentage of completion method or the completed contract method to recognize revenue. However, since the company is small, it is likely that the completed contract method will be more appropriate since it allows the company to defer income recognition until the contract is completed. This method may be more suitable for small companies that do not have the resources to estimate the percentage of completion accurately. Therefore, the completed contract method will defer income and can be used.

In the Case of a Small Home Construction Company That