Multiple choice

As contractor while executing a number of projects can adopt accounting system of

  1. either completed contact or percentage of completion method

  2. both the methods for different contracts

  3. both the methods for single contract

  4. as per the list given in AS - 6
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A contractor can use different accounting methods (completed contract or percentage of completion) for different contracts, but must consistently apply one method to each specific contract. Using both methods on a single contract would violate consistency principles.

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