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

Define meat as a rich source of protein, Define Meat as a Rich Source of Pr...

Define Meat as a Rich Source of Protein? Skeletal or striated muscles are used for food purposes. Flesh of cattle, sheep and swine comprise most of the meat contents. Edible me

fungi, Fungi The study of fungi (s. fungus) is called mycology. Fungi...

Fungi The study of fungi (s. fungus) is called mycology. Fungi are unicellular or multicellular chemoheterotrophic eukaryotes. They may be grouped into yeasts, molds and funga

Biodiversity as products, Individual components of biodiversity provide an ...

Individual components of biodiversity provide an unbeliev able wide range of products that are used to enhance the lives of people in all countries of the world. It is the diversit

Zoology, #question.characteristics of coelenterata?.

#question.characteristics of coelenterata?.

Agro industrial-chemical composition and nutritive values, Chemical Composi...

Chemical Composition and Nutritive Values The nutritional quality of an oil meal protein will be affected by the processing conditions to which it is been exposed. Three major

Define about the mid-day meal programme, Define about the Mid-day Meal Prog...

Define about the Mid-day Meal Programme? The National Programme of Nutritional Support to Primary Education commonly known as the Mid Day Meal (MDM) Scheme (was launched in Aug

Describe the maturity stages in fish, Question 1: (a) Describe the mat...

Question 1: (a) Describe the maturity stages in fish. (b) "k" and "r" selection strategies are commonly used to describe the response of fish to biotic and abiotic cond

Pulmonary function tests - diagnostic tests, Pulmonary  Function Test: ...

Pulmonary  Function Test: Pulmonary functions  tests (PFTs) provide information about a clients manifestation by measuring lung volumes, lung mechanics, and diffusion capabili

Nerve cells, how to design a nerve cell for homework

how to design a nerve cell for homework

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