Which statement is true when the outcome of construction contract cannot be estimated reliably?    a. Contract costs shall be recognized as an expense in the period when incurred. b. Revenue shall be recognized only to the extent of contract costs incurred that is probable will be recoverable c. All of these statements are true. d. An expected loss on the construction contract shall be recognized as an expense immediately.

Q: Based on the requirements and guidance of IFRS 15, one of the following is not considered part of…

A: Under the contract costing, there is an agreement made between two parties in respect of performing…

Q: The primary issue in the accounting for construction contracts is   the determination of the…

A: Construction contract:     It is the contract between the parties that include all details of…

Q: Which of the following costs shall from part of contract costs of long-term construction contract?…

A: Following is the answer to the given question

Q: purpose of recognizing depreciation on the financial statements?  Is it designed to report PPE at…

A: Property, plant, and equipment (PPE) are long-term assets that are crucial to business operations.…

Q: f the Construction in Progress account is greater than the Contract Billings, the excess is treated…

A: Construction in progress means the contracts' work which still going on and is yet to be completed.

Q: Revenue should be recognized over time when a performance obligation is satisfied over time. That…

A: Given statement is: Revenue should be recognized over time when a performance obligation is…

Q: Which of the following statements is not applicable to contract acquisition costs under ASC Topic…

A: In the given case all of the following statements is applicable to contract acquisition costs under…

Q: When it is probable that total contract costs will exceed total contract revenue, how shall the…

A: SOLUTION CONTRACT COST IS THE TRACKING OF  COSTS ASSOCIATED WITH A SPECIFIC CONTRACT WITH A CUSTOMER…

Q: S1: Zero Profit Method in revenue recognition principle recognizes income upon the completion a…

A: S1: The Zero Profit Method of revenue recognition recognises income when a construction contract is…

Q: The firm recognizes an expense when the following condition(s) hold(s):   Select one: A. The…

A: Introduction:- Generally expenses should be recognized in the same period as the revenues relating…

Q: Direction: Choose the correct answer.  1. A provision is a. An event which is not recognized…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Which of the following conditions would violate the revenue recognition principle? Revenue is…

A: Revenue: This is the income of a firm during an accounting period. The income is recognized as and…

Q: xplicitly identified in the contract, it means that: a. the identified asset is never mentioned in…

A: When the asset is implicitly identified, this means asset is implied but is not directly expressed.…

Q: Identify the proper accounting for losses on long-term contracts.

A: Revenue recognition: Revenue recognition principle states that every business organization should…

Q: Explain an example of long-term construction contracts qualify for revenue recognition over time.

A: As per Accounting Standards Codification, revenue should be recognised when the seller satisfies…

Q: In accounting for a long-term construction contract using the percentage of completion method, the…

A: Percentage of completion method requires reporting of revenue and expenses period by period basis.

Q: The historical cost principle provides that: Select one: O a. the recorded amount of an acquired…

A: Accounting principles are the rules required to be followed by the company in the process of…

Q: Any anticipated loss should be recognized * A.on a percentage basis during the contract period B.…

A: The amount of anticipated loss is calculated regardless of: (a) whether or not work on the contract…

Q: Accounting Which statement is false? Accounting for asset retirement obligations (ARO) apply to both…

A: The given question asked about the correctness of the statement.    Assets retirement obligations:…

Q: age of time B. Completion of percentage of a project C. Performan

A: Revenue refers to the sum value of money gained by a business by selling its goods or services in…

Q: Determine if this shall result in recognition of liabilities 12. violation of the terms of a…

A: As per IAS 37 of IFRS Provisions, contingent liabilities and contingent assets A Provision is a…

Q: When the outcome of a construction contract cannot be estimated reliably, how shall contract revenue…

A: when the outcome of a construction contract can be estimated reliably, contract revenue and contract…

Q: Which one among the following conditions is NOT a condition of Murabaha:   - Payment may be made…

A: Murabaha, also known as cost-plus finance, is an Islamic financing system in which the buyer and…

Q: . Must be expensed in the period incurred unless it can be clearly demonstrated that the expenditure…

A: IASB stands for International Accounting Standards Board and helps in the preparation and issuance…

Q: Which statement is incorrect in the measurement of a provision? * a. The risks and uncertainties…

A: Provisions are made when there is ambiguity about the relative price of discharge of these…

Q: When outcome of a construction contract is estimated reliably, contract revenue and contract costs…

A: Solution: As per IAS 11, "when the outcome of a construction contract can be estimated reliably,…

Q: All of Definitions of the financial failure confirm the project's inability to pay it current and…

A: solution concept financial failure                 Financial failure refer to the situation where…

Q: The cost-plus approach:   a. refers to contracts that are modified from their original terms…

A: Cost plus contract means a contract in which buyer agrees to pay the  contractor all the Cost plus a…

Q: Which one of the following disclousures is required by generally accepted accounting principle? a.…

A: The correct option is B. Balances of major classes of depreciable assets, by nature or function.

Q: What two methods are identified in the Codification as appropriate in accounting for long-term…

A: Long term Construction Contract Construction contract are in different type in accordance with need…

Q: I. The costs of uninsured hazards or claims for uninsured accidents during construction are regarded…

A: Assets are the resources of the entity for which the company or the individual has ownership. They…

Q: Which of the following shall be excluded in the contract costs of a construction contract? * A.…

A: Contract costs should comprise:(a) costs that relate directly to the specific contract;(b) costs…

Q: How much must be shown as current asset (cost of uncompleted contract in excess of billings) in the…

A: Current Assets are the group of assets held by the business or a company for the purpose of regular…

Q: Under the U.S.​ GAAP, which of the following is not an approach used to determine when to report an​…

A: The U.S. GAAP are accounting policies followed by US companies for financial reporting purposes.

Q: What are the two basic methods of accounting for long term construction contracts? Indicate the…

A: Explain the two basic methods of accounting for long term construction contracts: The two basic…

Q: The amount of asset cost assigned as an expense to a particular period is called: a. Depreciation b.…

A: Introduction: Income statement: All revenues and expenses are shown in Income statement. It tells…

Q: Under the completed-contract method,   Question 16 options: a revenue, cost, and gross profit are…

A: Under the completed-contract method,                     The total revenues, total costs incurred,…

Q: Accounting is not as precise and objective as it is sometimes portrayed as being. There are areas…

A: Depreciation Expense is nothing but an apportionment of cost of fixed assets that are appropriate to…

Q: Which of the following journal entries is not made in the first period of a long-term contract if…

A: In case of long term contract , we can show proportionate profit every year depending on following…

Q: If the outcome of a long-term contract can be measured reliably, the preferred accounting method…

A: The percentage of completion method is an accounting technique in which long-term deed income and…

Q: how long-term construction contract are accounted for and some of the issues that are faced for…

A: Long-term construction contract is reported in financial statements is as follows: At the end of…

Q: When percentage-of-completion accounting is not appropriate, U.S. GAAP requires the use of the…

A:

Q: Per PAS 8, it is an adjustment of the carrying amount of an asset or a liability., or the amount of…

A: As per PAS 8, "A change in accounting estimate is an adjustment of the carrying amount of an asset…