Revenue Recognition, Percentage of Completion, and Completed-Contract Method

There are two stipulations with the completed-contract method. Which of the following is one of them?

Contract cannot be bigger than $10 million

Which revenue recognition method is typically selected when a business has a little leeway with the way the contracts are accounted for?

Completed contract

In business, which of the following is one of the two main methods used to account for revenue?

Completed contract Percentage of completion

Which of the following is the main type of industry where the completed contract method is used?

Construction

Which of the following is an industry that would benefit from using the percentage of completion method?

Energy facilities

Which of the following types of contract would normally call for the use of the percentage of completion method to be used?

Long-term contracts

Which of the following is one of the three basic steps that is used under the contract approach for revenue recognition?

Recognize revenue as the performance obligations are satisfied Allocate transaction prices based on relative separate selling prices

Under the completed contract, which of the following is not recognized until the contract is completed?

Revenue

The completed contract method is normally used for which of the following types of contract or project?

Short-term

Which of the following best describes the completed contract method of revenue recognition?

The revenue is not recorded until the contract has been completed in full.

method, revenue is not recorded until the contract has been completed in full.

completed-contract

of the contract that is completed at the milestones.

percentage

method because they are able to record periodic revenue from the contract.

percentage pf completion

method, revenues and costs are recorded based on a percentage.

percentage-of-completion

under the percentage-of-completion method when a business can estimate stages of completion.

reasonably possible

Under the completed-contract approach, there are

three