Question

Revenue from service transactions, is usually recognized by a method known as__________.

• A. Accrued method.
• B. Proportionate completion method.
• C. Consistency method.
• D. Matching principle.

Answer 1

The correct option is B Proportionate completion method.

Revenues from service transactions, is usually recognised by a method known as proportionate completion method. Proportionate completion method is a method where the revenues or costs of service are recorded as a percentage of work completed.