In accounting for a long-term construction contracts, using percentage-of-completion (over time) method, the amount of construction in progress account: a. Is the same with the total revenue recognized. b. Is equal to the gross profit for the year plus the actual cost incurred. c. Total contract price multiplied by the percentage of completion. d. All of the choices
In accounting for a long-term construction contracts, using percentage-of-completion (over time) method, the amount of construction in progress account: a. Is the same with the total revenue recognized. b. Is equal to the gross profit for the year plus the actual cost incurred. c. Total contract price multiplied by the percentage of completion. d. All of the choices
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 18RE
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In accounting for a long-term construction contracts, using percentage-of-completion (over time) method, the amount of construction in progress account:
a. Is the same with the total revenue recognized.
b. Is equal to the gross profit for the year plus the actual cost incurred.
c. Total contract price multiplied by the percentage of completion.
d. All of the choices
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