CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Use of the percentage-of-completion method, versus the completed contract method results in higher ______.
A. debt equity ratios and cash flows
B. profitability ratios in the early years of the contract
C. total income over the life of the contract
Explanation: Percentage of completion results in the same cash flows and income over the life of the contract. In the early years of the contract, the profit margins will be higher.

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