What the principal factor to be considered should be

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Problem 1: Under ASPE, when selecting an accounting method for a newly contracted long-term construction project, the principal factor to be considered should be

1- the terms of payment in the contract.

2- the inherent nature of the contractor's technical facilities used in construction.

3- the method commonly used by the contractor to account for other long-term construction contracts.

4- the degree to which a reliable estimate of the costs to complet and extent of progress toward completion can be made.

Problem 2: Under ASPE, when selecting an accounting method for a newly contracted long-term construction project, the principal factor to be considered should be

1-the terms of payment in the contract.

2- the inherent nature of the contractor's technical facilities used in construction.

3- the method commonly used by the contractor to account for other long-term construction contracts.

4- the degree to which a reliable estimate of the costs to complet and extent of progress toward completion can be made.

Reference no: EM132680318

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