- CFA Exams
- CFA Exam: Level I 2021
- Study Session 7. Financial Reporting and Analysis (2)
- Reading 21. Understanding Income Statements
- Subject 3. Revenue Recognition in Special Cases
CFA Practice Question
Under the completed contract method, revenue is recognized ______
B. when the project is complete.
C. throughout the project, based upon the amount of work completed each year.
A. when construction begins on the project.
B. when the project is complete.
C. throughout the project, based upon the amount of work completed each year.
Correct Answer: B
Revenue is recognized only when the contract is completed.
User Contributed Comments 5
| User | Comment |
|---|---|
| eb2568 | ...as the name implies. |
| ldfrench | If you missed this, you should look for a career in HR or marketing instead. |
| schweitzdm | If you missed this, you should put it on a flashcard and study it while ignoring elitist comments on Analyst Notes. |
| fobucina | It's always nice to see people having the urge to make conceited comments. |
| gyee2012 | usually the people making conceited comments dont get the question right |