1. Income recognized using the installment method of accounting generally equals cash collected multiplied by the
a. Net operating profit percentage.
b. Gross profit percentage.
c. Net operating profit percentage adjusted for expected uncollectible accounts.
d. Gross profit percentage adjusted for expected uncollectible accounts.
2. A company uses the completed-contract method to account for a long-term construction contract. Revenue is recognized when recorded progress billings
I. Are collected
II. Exceed recorded costs
A. I only.
B. II only.
c. Neither I nor II.
D. Both I and II.