If a company uses the completed contract method rather than the percentage of completion method,the total profit the company recognizes from the beginning of the project throughout its completion will be which of the following?
A)greater if the completed contract method is used.
B)greater if the percentage of-completion method is used.
C)the same for both methods.
D)greater for the completed-contract method only if the project takes longer than five years to complete.

Question

Quizplus · Accepted Answer

The total profit recognized over the life of the project will be the same under both methods; the difference lies in the timing of when the profit is recognized.

If a Company Uses the Completed Contract Method Rather Than