问题
单项选择题
An oil exploration company has been contracted to dig 100 exploratory holes for $ 200000. The cost to complete this job is estimated to be $150000, but the company doesn’t recognize any of the $ 50000 profit until the job is completed. Which revenue recognition method is being used
A．
| A. Completed contract method. |
B．
| B. Percentage-of-completion method. |
C．
| C. Sales basis method. |
答案
参考答案：A
解析：The completed contract method doesn’t recognize revenue and expense until the contract is completed. The percentage-of-completion method would have recognized a portion of the $ 50000 profit prior to completion.