In the case of a small home construction company that builds under long-term contracts,generally:
A)The percentage of completion method must be used.
B)The percentage of completion method should be used to defer income.
C)The completed contract method must be used.
D)The completed contract method defers income recognition.
E)None of the above is true.

Question

Quizplus · Accepted Answer

The completed contract method defers income recognition until the contract is completed, which can be beneficial for tax purposes in certain situations.

In the Case of a Small Home Construction Company That