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Unformatted text preview: Quiz 9 (Construction) Points Possible 10 Points Earned 8 Points Missed 2 Points Ungraded Score 80.0% 1. (T/F) Section 460 generally requires large contractors to use the percentage of completion (PCM) method of accounting for long-term contracts. Response: TRUE Answer: TRUE Points: 1 / 1 2. (T/F) A long-term construction contract is one that takes at least 12 months to complete. Response: FALSE Answer: FALSE Points: 1 / 1 Comment: It must span at least 2 tax years, but this could be only a few days at the end of one year and a few days at the beginning of the next year. 3. (T/F) The cost-to-cost method requires a contractor to accrue for tax purposes income that has been earned on the contract even if it has not been paid. Response: TRUE Answer: TRUE Points: 1 / 1 Comment: Income may be accelerated because it is deemed to be received as costs...
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This note was uploaded on 06/23/2009 for the course BUPA 556 taught by Professor Curry during the Summer '09 term at IUPUI.
- Summer '09