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Tags
#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
An advantage of the [...] method is that it results in better matching of revenue recognition with the accounting period in which it was earned.
Answer
percentage-of-completion

Tags
#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
An advantage of the [...] method is that it results in better matching of revenue recognition with the accounting period in which it was earned.
Answer
?

Tags
#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
An advantage of the [...] method is that it results in better matching of revenue recognition with the accounting period in which it was earned.
Answer
percentage-of-completion
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an advantage of the percentage-of-completion method is that it results in better matching of revenue recognition with the accounting period in which it was earned.

Original toplevel document

3.2.1. Long-Term Contracts
han the completed contract method and thus may be considered a less conservative approach. In addition, the percentage-of-completion method relies on management estimates and is thus not as objective as the completed contract method. However, <span>an advantage of the percentage-of-completion method is that it results in better matching of revenue recognition with the accounting period in which it was earned. Because of better matching with the periods in which work is performed, the percentage-of-completion method is the preferred method of revenue recognition for long-term contracts and is

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