When is revenue recognized under the percentage of completion method?
A)when construction begins on the project.
B)when the project is complete.
C)throughout the project,based upon the amount of work completed each year.
D)throughout the project,based upon the amount of cash received from the customer.

Question

Quizplus · Accepted Answer

Under the percentage of completion method, revenue is recognized throughout the project based upon the amount of work completed each year. This method is used when there is a long-term contract where the project is completed over a period of time and it is possible to estimate the percentage of completion of the project at each year end.

When Is Revenue Recognized Under the Percentage of Completion Method