Question: Why is the percentage - of - completion method preferred over the completed - contract method for long - term contract revenue recognition? Question 2
Why is the percentageofcompletion method preferred over the completedcontract method for longterm contract revenue recognition?
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It results in higher reported profits in the early stages of the contract.
It aligns revenue and expenses with the progress of the contract.
It eliminates the need for estimating the stage of completion.
It simplifies accounting for longterm contracts.
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