单选题 Which of the following statements about the percentage-of-completion and completed contract methods is FALSE? The completed contract method will produce: A. the same cash flows as that using the percentage-of-completion method. B. smaller net worth and retained earnings than using the percentage-of-completion method. C. greater net income in the periods before construction is completed, but not at the end of the contract, than using the percentage-of-completion method.

【正确答案】 C

【答案解析】The completed contract method less net income in the periods before construction is completed, but not at the end of the contract, than using the percentage-of-completion method. This is because the completed contract method recognizes revenue and expense only when the contract has been completed.