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Tags
#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
Under US GAAP, the completed contract method is also acceptable when the entity has primarily [...].
Answer
short-term contracts


Tags
#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
Under US GAAP, the completed contract method is also acceptable when the entity has primarily [...].
Answer
?

Tags
#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
Under US GAAP, the completed contract method is also acceptable when the entity has primarily [...].
Answer
short-term contracts

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Under US GAAP, the completed contract method is also acceptable when the entity has primarily short-term contracts.

Original toplevel document

3.2.1. Long-Term Contracts
y finished (the remaining costs and potential risks are insignificant in amount), although provision should be made for expected losses. Billings and costs are accumulated on the balance sheet rather than flowing through the income statement. <span>Under US GAAP, the completed contract method is also acceptable when the entity has primarily short-term contracts. Note that if a contract is started and completed in the same period, there is no difference between the percentage-of-completion and completed contract methods. Examples 1,

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