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Simple English definitions for legal terms

completed-contract accounting method

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A quick definition of completed-contract accounting method:

The completed-contract accounting method is a way of reporting profit or loss on certain long-term contracts by recognizing gross income and expenses in the tax year that the contract is completed. This means that the income and expenses are only recorded when the project is finished, rather than as they occur. It is one of several accounting methods used to determine income and expenses for tax purposes, including accrual accounting, cash-basis accounting, and percentage-of-completion method.

A more thorough explanation:

The completed-contract accounting method is a system for reporting profit or loss on certain long-term contracts by recognizing gross income and expenses in the tax year that the contract is completed.

For example, if a construction company signs a contract to build a new office building and the contract takes three years to complete, the completed-contract accounting method would recognize all the income and expenses related to the project in the year that the building is finished.

This method is different from the percentage-of-completion method, which recognizes revenue gradually during the completion of the subject matter of the contract.

The completed-contract accounting method is commonly used in the construction industry and other industries that involve long-term contracts.

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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