Revenue on a long-term contract should not be recognized according to the proportion of the performance obligation that has been completed if:
A) Completion rates are certain.
B) Profits are low.
C) Projects are more than five years to completion.
D) The arrangement does not qualify for revenue recognition over time.

Question

Quizplus · Accepted Answer

The same three criteria for determining whether it is appropriate to recognize revenue over time apply to long-term contracts as apply to other contracts.

Revenue on a Long-Term Contract Should Not Be Recognized According