Briefly explain how a company that recognized revenue under the percentage-of-completion method (estimating percentage of completion using a cost-to-cost ratio) could manage earnings upward to meet a profit projection. What sort of ethical problems could result from that earnings management?

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The Answer of Briefly explain how a company that recognized revenue under the percentage-of-completion method (estimating percentage of completion using a cost-to-cost ratio) could manage earnings upward to meet a profit projection. What sort of ethical problems could result from that earnings management?

Briefly Explain How a Company That Recognized Revenue Under the Percentage-Of-Completion