Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

The percentage-of-completion method of accounting for long-term construction contracts is an exception to the?

A. Going concern assumption.

B. Revenue recognition principle.

C. Matching principle.

D. Historical cost principle.

user-image
Question added by Hossam Mohamed , Senior Accountant , Allied Arab Assurance Brokerage
Date Posted: 2015/08/15
Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

Answer B is the correct Answer 

Ahmad Halloum
by Ahmad Halloum , Senior Accountant , M.O. GANDOUR & SONS

"B" is the right answer.

The percentage-of-completion method allows revenue to be recognized before the asset has been completed.

It's an exception to the normal revenue recognition methods.

Pratheepan Sathasivam
by Pratheepan Sathasivam , Senior Accounting Supervisor , Almarai

Historical cost principle.

More Questions Like This