Reference no: EM132986771

Problem 1: Under the completed-contract method:

Select one:

a. Revenue, cost, and gross profit are recognized during the production cycle.

b. Costs (Construction in Progress) are recognized during the production cycle, but gross profit recognition is deferred until the contract is completed.

c. Revenue, cost, and gross profit are not recognized until the contract is completed.

d. Gross Profit is recognized during the production cycle, but net losses are delayed until the contract is completed.

Problem 2: The account "Construction in Progress" contains which of the following amounts?

Select one:

a. Both Gross Profit recognized and estimated costs to complete

b. Neither Gross Profit recognized nor estimated costs to complete

c. Gross profit recognized, but not estimated costs to complete

d. Estimated costs to complete, but not gross profit recognized