M18-4 In accounting for a long-term construction contract for which there is a projected profit, the balance in the construction-in-progress asset account at the end of the first year of work using the completed-contract method would be a.      Zero b.     The same as the percentage-of-completion method c.      Lower than the percentage-of-completion method d.     Higher than the percentage-of-completion method

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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M18-4 In accounting for a long-term construction contract for which there is a projected profit, the balance in the construction-in-progress asset account at the end of the first year of work using the completed-contract method would be

a.      Zero

b.     The same as the percentage-of-completion method

c.      Lower than the percentage-of-completion method

d.     Higher than the percentage-of-completion method

 

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