QUESTION 8construction finance Which statement is correctly

QUESTION 8-construction finance

Which statement is correctly explained \"percentage of completion\" method?

Expenses recognize in which cash was actually expended

Recognize revenues and expenses at the completion of the project

Recognize revenues and expenses through the course of the construction project

Easily use to defer income tax

Solution

Option C is correct. It Recognize revenues and expenses through the course of the construction project. It gives the result in long term.