Question: For what reasons should the percentage-of-completion method be used over the completed-contract method whenever possible?

For what reasons should the percentage-of-completion method be used over the completed-contract method whenever possible?

Step by Step Solution

★★★★★

3.44 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Under the percentageofcompletion method income is reported to reflect more accurately the produc... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

11-B-A-R-R (9).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

The percentage of completion and completed contract methods are described in the FASB ASC. Search the codification to find the paragraphs covering these topics, cite them, and copy the results.

Q:

Nathan uses the percentage of completion method to report income from his real estate construction contracts. A contract was begun in 2016 and completed in 2017. In 2016, Nathan reported gross income...

Q:

Nathan uses the percentage of completion method to report income from his real estate construction contracts. A contract was begun in 2017 and completed in 2018. In 2017, Nathan reported gross income...

Q:

I need help answering our weekly discussion questions. The topic is on revenue recognition. What is the difference between the Percentage-of-Completion vs. the Completed-Contract Method. The answer...

Q:

the percentage-of-completion method be used over the completed-contract method whenever possible?

Q:

Old MathJax webview 3. a. New machinery, which replaced a number of employees, was installed and put in operation 2.5 in the last month of the fiscal year. The employees had been dismissed after...

Q:

*35. For what reasons should the percentage-of-completion method be used over the cost-recovery method whenever possible?

Q:

3. Grover and Callaway Construction company had the following information: 2017 2018 2019 Construction costs incurred during the year $100,000 186,000 314,000 Estimated costs to complete the contract...

Q:

Application Applying Accounting Standards Managers must make decisions with respect to the financial reporting necessary to apply accounting standards. Consider the article ?Halliburton: Accounting...

Q:

The bourd of firectors of Mellock Construction Compurn is meeting to choose betwern the campleted-contract inethod and the eneaged to assist Metlock's controller in the preparation of a presentation...

Q:

Suppose a French affiliate repatriates as dividends all the after-tax profits it earns. If the French income tax rate is 50% and the dividend withholding tax is 10%, what is the effective tax rate on...

Q:

Calculate the current gain io/is in the circuit of Fig. 3.105? Figure 3.105 20 10 : 30 (2 5% 40 12

Q:

Integrate 5 x 4 l n ( x ) d x : What type of problem is this? Select an answer Answer: Select an answer Exponentials

Q:

The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Common Stock , $45 par . . . . . . . . . . . . . . . . . . . . . . . . . . ....

Q:

Suppose that A is a nonempty set, and f is a function that has A as its domain. Let R be the relation on A consisting of all ordered pairs (x, y) such that f (x) = f (y). a) Show that R is an...

Q:

Holt Corporation is contemplating the acquisition of Sambo Company's net assets on December 31, 2015. It is considering making an offer, which would include a cash payout of $225,000 along with...

Q:

Jack Company is a corporation that was organized on July 1, 2011. The June 30, 2016, balance sheet for Jack is as follows: The experience of other companies over the last several years indicates that...

Q:

Moon Company is contemplating the acquisition of Yount, Inc., on January 1, 2011. If Moon acquires Yount, it will pay $730,000 in cash to Yount and acquisition costs of $20,000. The January 1, 2011,...

Q:

The fill amount in 2-liter soft drink bottles is normally distributed, with a mean of 2.0 liters and a standard deviation of 0.05 liter. If bottles contain less than 95% of the listed net content...

Q:

Ramirez Inc., a publishing company, is preparing its December 31, 2011 financial statements and must determine the proper accounting treatment for the following situations. The company has retained...

Q:

Dungannon Enterprises Ltd. sells a specialty part that is used in widescreen televisions and provides the ultimate in screen clarity. To promote sales of its product, Dungannon initiated a program...

Q:

Are all international companies subject to the same internal control standards?

Q:

What are some of the consequences of international differences in internal control standards?

Q:

Briefly describe the key elements of international auditing convergence.

Q:

Your fund is a VC fund in software services sector, where you are a general partner (GP). Your optimal portfolio size[1] is 10 ventures for this current fund of 20MM raised from your LPs. Company =...