For what reasons should the percentage-of-completionmethod be used over the completed-contract methodwhenever possible?

Q: Define the term Approval of payment requests?

A: The payment is an amount of money paid by the customer to the seller in exchange of goods and…

Q: Define forward contract.

A: It is a form of derivative contract which is used as an agreement

Q: Allocate a contract’s transaction price to multiple performance obligations.

A:

Q: Percentage of Completion is favored to be used under the following circumstances, except:   a.…

A: The percentage of completion method reports revenues and expenses in terms of the work completed to…

Q: Describe the process of Evaluating Mutually Exclusive Projects?

A: Mutually exclusive projects are the capital investment proposal where best proposal option is…

Q: The MARR used for a project’s acceptance or rejection is set relative to what cost?

A: MARR is a discount return which is the lowest rate of return that must be accepted in the project.

Q: Explain the accounting for contract modifications.

A: Contract modification may occur when any addition, change or cancellation of specific terms and…

Q: Which of the following should be avoided in a contract if cost certainty is important?…

A: Several options have been proposed as the clause that should be avoided in a contract if cost…

Q: Define the term Contract Modifications.

A: Accounting: Accounting is an art of collecting, recording, summarizing and presenting the financial…

Q: What are Equal-Payment Series?

A: Equal payment refers to the equal net periodic cash flows that an investor receives during the life…

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A: Definition of a Contract: A contract is a legally enforceable agreement. It might be a promise to do…

Q: What is a forward contract?

A: Introduction: This question is related to the concept of financial derivatives. Derivative…

Q: Determine the theoretical ex-rights price?

A: The determination of the theoretical ex-rights price is generally done when stocks are issued and…

Q: What is the proposal’s internal rate ofreturn?

A: The internal rate of return is a metric used in financial analysis to estimate the profitability of…

Q: What Is Fixed-Price Contract with Redetermination?

A: A fixed-price contract with prospective price redetermination provides for-       (a) A firm fixed…

Q: Give examples of the Equal Payment Series?

A: The goal of this method of investment is to determine the present value of an equivalent payment…

Q: Define Forward and Future contract and also differentiate between hedging and Speculation

A: A forward contract is a customisable derivative contract between two parties to buy or sell an asset…

Q: What Is Cost-Based Contracts?

A: Cost plus contracts is defined as an agreement for reimbursement of the company regarding an…