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

Physical weathering-weathering of rocks, Physical Weathering Mechanical...

Physical Weathering Mechanical forces acting upon the rocks cause physical weathering. Temperature fluctuations cause expansion and contraction of rock surface resulting in the

Illustrate bite-wing radiographs, Q. Illustrate Bite-wing radiographs? ...

Q. Illustrate Bite-wing radiographs? The short and long-term evaluation of crestal bone loss around implants is best evaluated with intraoral radiographs. Threaded implants mak

Define dietary factors with antinutritional effects, Define Dietary Factors...

Define Dietary Factors with Antinutritional Effects? In the above sections, we have learnt about a variety of food components having a host of health promotive properties. Let

Describe about the lysosomes enzymes, Describe about the Lysosomes enzymes ...

Describe about the Lysosomes enzymes Within the cytoplasm of the cell, several hydrolytic enzymes (lytic enzymes) capable of hydrolysing proteins, nucleic acids and carbohydra

How is digestion performed in protozoans, How is digestion performed in pro...

How is digestion performed in protozoans? Digestion in protozoans is intracellular digestion: organic material is internalized and degraded inside the cell. Protozoans get

Define working of kidney in excretion of zinc in humans, Define working of ...

Define working of Kidney in excretion of zinc in humans? Very small amount of zinc is excreted in the urine (0.3-0.7 mg/day), as most of the zinc filtered by the kidney is reab

Define a protein amino acid sequence, Protein structure is determined solel...

Protein structure is determined solely by a protein amino acid sequence. Should a genetically engineered protein in which the order of all amino acids is reversed therefore have th

Advantages and disadvantages in usage of solid fuels, Advantages (1)   ...

Advantages (1)   Liquid and gaseous fuels can be manufactured from solid fuels. (2)   Relatively cheap and easily available. (3)   These are easy to transport. (4)   A

Give detail explanation about swimming, Give detail explanation about Swimm...

Give detail explanation about Swimming Swimming is an excellent form of exercise. Swimming can improve the posture and circulation. It is a healthy activity. There are certain

Determine the term - akinetic and myoclonic seizures, Determine the term - ...

Determine the term - Akinetic and Myoclonic Seizures Akinetic seizures are ordinarily seen only in children. Usually, an affected child collapses suddenly and without warning.

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