Level I Question #7: Which of the following statements regarding - TopicsExpress

Level I Question #7: Which of the following statements regarding the methods of revenue recognition is most accurate? In the first year of a long-term contract: A. the completed contract method is used when the selling price or cost estimates are unreliable. B. the percentage-of-completion method generally results in lower retained earnings than the completed contract method. C. the completed contract method, in comparison to the percentage-of-completion method, will generally result in higher net income. Answer will be posted on May 12, 2014.

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