Revenue recognition on long-term construction projects, Biology

Assignment Help:

Q. Revenue Recognition on Long-term Construction Projects?

Revenue Recognition on Long-term Construction Projects Company identifies revenue from a long-term construction project under two different methods (a) the completed-contract method or (b) the percentage-of-completion method. The completed-contract method doesn't recognize any revenue until the project is completed. In that period they make out all revenue even though the contract may have required three years to complete. Consequently the completed-contract method recognizes revenues at the time of sale as is true for most sales transactions. Companies hold costs incurred on the project forward in an inventory account (Construction in Process) and charge them to expense in the period in which the revenue is recognized. Some accountants squabble that waiting so long to recognize any revenue is unreasonable. They believe that for the reason that revenue-producing activities have been performed during each year of construction revenue must be recognized in each year of construction even if estimates are needed.


Related Discussions:- Revenue recognition on long-term construction projects

Sickle Cell, Sickling occurs in deoxyhemoglobin S, but not in oxyhemoglobin...

Sickling occurs in deoxyhemoglobin S, but not in oxyhemoglobin S. Oxyhemoglobin has a small hydrophobic \"pocket\" in a ß chain region located in the interior of the protein. In de

Lymph, Why lymph is also called middle man of body

Why lymph is also called middle man of body

Define serum vitamin a content, Define Serum Vitamin A Content? Assessm...

Define Serum Vitamin A Content? Assessment of serum vitamin A content is the most reliable criterion Tor assessing vitamin A status. Serum levels indicative of various degrees

Define sugar as a type of carbohydrates, Define Sugar as a type of Carbohyd...

Define Sugar as a type of Carbohydrates? This group includes monosaccharide and disaccharides. List down the names of sugars under both these groups and check it out with those

Excretory organs, why the excretory organ of prawn is called ''green gland'...

why the excretory organ of prawn is called ''green gland''?

Fungi, Candida albicans, and Aspergillus species are the most common of the...

Candida albicans, and Aspergillus species are the most common of the many fungal organisms identified as causing IE. Fungal endocarditis arises in specific settings. Valve replace

What is glucose intolerance and diabetes, What is Glucose Intolerance and D...

What is Glucose Intolerance and Diabetes ? Insulin resistance, by perinsulinaemia and glucose intolerance appear to promote atherosclerosis. The prevalence of CAD raises from 2

Mcnaughton case and law, MCNAUGHTON'S CASE AND LAW: In 1843, McNaughto...

MCNAUGHTON'S CASE AND LAW: In 1843, McNaughton shot and  killed Sir Robert Peel's secretary Edward -Drymmond.  It was  shown  that McNaughton suffered from a number of  delusi

Explain leaf silhouettes, Leaf silhouettes Place a leaf on a sheet of w...

Leaf silhouettes Place a leaf on a sheet of white paper and hold it securely with thumb or finger. Press a piece of natural or artificial sponge next to an ink pad. With short,

Define nutrient requirements during the periods of pregnancy, Define nutrie...

Define nutrient requirements during the periods of pregnancy? In the previous unit, we learnt about the basic principles of meal planning and the various considerations and gui

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd