Under which two situations can a firm utilize the percentage completion method to recognize revenue as...

Under which two situations can a firm utilize the percentage completion method to recognize revenue as the asset for sale is being constructed?

Expert Solution

The firm can utilize the percentage completion method to recognize revenue as the asset for sale is being constructed when:-

1. There is a certainty that collections will be received.

2. The cost and rate of the project of completion must be ascertainable to allocate the profit to each year.

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ekkarill92 answered 2 years ago

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