During a study session, one of your classmates states the following: Companies with contracts that span multiple
Question:
During a study session, one of your classmates states the following:
“Companies with contracts that span multiple periods can choose to use either the percentage-of- completion method or the zero-profit method. The choice is not really that significant, because by the end of the contract the company will have recognized the exact same amount of revenue, expenses, and profit.”
Required
Evaluate your classmate’s statement. Identify the elements that are correct and incorrect.
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Related Book For
Understanding Financial Accounting
ISBN: 9781119715474
3rd Canadian Edition
Authors: Christopher D. Burnley
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