The Principal Disadvantage of Using the Percentage-Of-Completion Method of Recognizing

Multiple Choice

The principal disadvantage of using the percentage-of-completion method of recognizing revenue from long-term contracts is that it

A) is unacceptable for income tax purposes.
B) gives results based upon estimates which may be subject to considerable uncertainty.
C) is likely to assign a small amount of revenue to a period during which a large amount of revenue was actually earned.
D) no revenue is recognized during the contract.