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Percentage of completion: GP or loss recognized each period

A) Existence
B) Valuation or Allocation
C) Completeness
D) Rights and Obligations

1 Answer

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Final answer:

The subject of this question is Accounting and the correct answer is B) Valuation or Allocation.

Step-by-step explanation:

The subject of this question is Accounting.

Percentage of completion is an accounting method used to determine the recognition of revenues and expenses for long-term projects. It is used to account for the profit or loss recognized for a project that is still in progress. The percentage of completion method recognizes revenue and expenses based on the percentage of work completed, rather than waiting until the project is fully completed.

Therefore, the correct answer to the question is B) Valuation or Allocation.

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