Revenue recognition method in which companies recognize revenue and gross profit at a point in time—that is, when the contract is completed. Under this method, companies accumulate costs of long-term contracts in process, but they make no interim charges or credits to income statement accounts for revenues, costs, or gross profit.

(a) contract
(b) continuing franchise fees
(c) franchisor
(d) completed-contract method

Ans: (d) completed-contract method