When using the completed contract method of accounting for long-term contracts: A. Estimated losses on the...
When using the completed contract method of accounting for long-term contracts:
A. Estimated losses on the overall contract are recognized before the contract is completed.
B. Expenses are recorded each period, but revenue is only recognized when the contract is completed.
C. Use of this method is not permitted under generally accepted accounting principles.
D. Neither gains nor losses are recognized until the contract is completed.
Homework Answers
Answer is D. Neither gains nor losses are recognized until the contract is completed
Since revenues and expenses are recognized at completion of contract.
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