[CFA level 1模拟真题]Version 4 Questions－Q30 face, completed, principles, accounting, class

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Q30. Assume U.S.GAAP (generally accented accounting principles] applies unless otherwise noted.

Compared to the completed contract method of revenue recognition, will the percentage-of-completion method most likely result in higher:

	Total assets?	Liabilities?
A	No	No
B	No	Yes
C	Yes	No
D	Yes	Yes

A. Answer A

B. Answer B

C. Answer C

D. Answer D

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答案和详解如下：

Q30  C  07 Modular Level I, Vol. I, pp 57-62  Study Sessions 7-34-c

Compared to the completed contract method, the percentage-of-completion method will most likely result in higher total assets, reflecting the accrual of gross profit during the contract period and lower liabilities, as the higher level of construction-in-progress provides a larger offset to advance billings.

LEEFEI571

C

yayalei

thanks

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c

yangyangda

c

vivian1022

c

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jungle1009

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ondesert

c