Which of the following statements about revenue recognition methods is most accurate?
The percentage of completion method recognizes profit corresponding to the costs incurred as a proportion of estimated total costs.
The description of the percentage-of-completion method is accurate. The completed contract method under U.S. GAAP recognizes revenue only when the entire project is complete. The installment method recognizes profit in proportion to cash collected.
Take more free practice tests for other ASVAB topics with our cfa level 1 exam