The Completed Contract Method for Accounting for Long-Term Construction Projects

Multiple Choice

The completed contract method for accounting for long-term construction projects requires that

A) no revenue is recognized until the project is completed.
B) costs are accumulated and revenue is recognized in proportion to cash collected.
C) gross profit is calculated each period, but deferred until the end of the contract.
D) revenue is calculated each period, but deferred until the end of the contract.